India's chief negotiator for the landmark free trade agreement with the European Union on Wednesday, 8 July described the pact as the country's most ambitious trade deal to date, saying it would significantly expand market access, strengthen rules-based commerce, and unlock new opportunities across labour-intensive industries, services, and technology. The agreement connects economies representing nearly two billion people and roughly a quarter of global output, placing it among the world's largest bilateral trade pacts.

What the Agreement Covers

Darpan Jain, Chief Negotiator from India's Department of Commerce, speaking at an event hosted by the Peterson Institute for International Economics in Washington, said the deal reflects India's broadest liberalisation commitments yet — spanning goods, services, investment, digital trade, supply chain diversification, and intellectual property. 'It is one of the most ambitious agreements,' Jain said. 'India has liberalised almost the entire basket of goods... Similarly in services, the entire landscape of services has been committed.'

India has also undertaken its most extensive commitments to date on sustainable development, digital trade, and non-tariff measures, according to Jain. Agriculture, however, has been carefully ring-fenced as a sensitive sector.

Opportunities for Labour-Intensive Sectors

Jain identified textiles and apparel as among the biggest potential beneficiaries. The EU imports approximately $170 billion worth of textiles and apparel annually from outside the bloc, yet India holds only around 5.4% of that market. Bangladesh, benefiting from preferential access, commands roughly 17%. The deal is expected to narrow that gap significantly.

India's leather and footwear exports tell a similar story. Vietnam accounts for about 23% of EU imports in the sector, while India's share stands at approximately 6%. Tariffs of up to 17% had long curtailed India's competitiveness, and the agreement is designed to address that structural disadvantage.

On the services front, Jain pointed to India's leadership in digitally delivered services and said the pact would facilitate greater collaboration in research and development, global capability centres, and technology-driven industries. 'The rules would provide the foundation of predictability,' he said, adding that the agreement establishes mechanisms to resolve disputes over technical regulations, sanitary and phytosanitary standards, licensing, and other non-tariff barriers.

The EU's Perspective

Christophe Kiener, the European Union's chief negotiator, called the agreement 'commercially very, very meaningful' and estimated that EU exporters would save approximately four billion euros in tariffs. He said the pact also reflects a broader strategic partnership now encompassing trade, security, defence, technology, and mobility.

Both negotiators stressed that the agreement was driven by long-term strategic interests rather than short-term geopolitical developments. Responding to a suggestion that recent shifts in US trade policy had accelerated the deal, Kiener said it had been concluded because 'there is a genuine and strategic and economic interest for the EU and India to come closer.'

Carbon Border Mechanism and Green Cooperation

The agreement also addresses the EU's Carbon Border Adjustment Mechanism (CBAM). Jain said both sides have agreed on safeguards to ensure the mechanism is applied non-discriminatorily, alongside frameworks to recognise India's carbon pricing measures and to cooperate on verification systems. The broader partnership includes collaboration on green hydrogen, renewable energy, clean technologies, and financial support for India's low-carbon transition.

Timeline and Ratification

Kiener said the legal review of the agreement is expected to conclude this month, after which it will move through the EU's approval process. He expressed hope that Prime Minister Narendra Modi would participate in the formal signing ceremony later this year. The agreement could enter into force during the second quarter of next year, he added. India's ratification process is comparatively streamlined, requiring approval by the Cabinet and the President rather than Parliament, according to Jain.