Story perspectives

India, EU Seal 96% Trade Deal, Save €4 B

6/18/2026

Summary

India Secures EU Deal

India will sign a free trade agreement with the European Union by the end of 2026.
The pact will cover 96.6% of goods, cut wine tariffs from 150% to 75% (later 20%), and save €4 billion annually.
It adds a Carbon Border Adjustment Mechanism for six sectors, raising Indian steel costs to $95 per $100 shipped.
EU investment in India reached $117.4 billion from 2000 to September 2024, over 16.5% of total FDI.

Summary

Modi Secures Deal

Prime Minister Narendra Modi met European Council President António Costa and Commission President Ursula von der Leyen at G7 summit in Evian, France, concluding India-EU free-trade talks.
Narendra Modi, António Costa and Ursula von der Leyen pledged security and defence cooperation and announced the India–Middle East–Europe Corridor (IMEC).
Narendra Modi, António Costa and Ursula von der Leyen discussed West Asia events and affirmed support for a stable, multipolar order.

History

Historical Context

After the 1947 GATT treaty evolved through the Uruguay Round (1986-1994) into the World Trade Organization on 1 January 1995, the WTO’s 166 members now cover over 98 % of world trade. Building on that multilateral framework, India and the European Union began 2024 free-trade negotiations projected to save €4 billion annually for both economies.

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India Secures EU Deal

India will sign a free trade agreement with the European Union by the end of 2026.
The pact will cover 96.6% of goods, cut wine tariffs from 150% to 75% (later 20%), and save €4 billion annually.
It adds a Carbon Border Adjustment Mechanism for six sectors, raising Indian steel costs to $95 per $100 shipped.
EU investment in India reached $117.4 billion from 2000 to September 2024, over 16.5% of total FDI.

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