India-EU FTA signing expected in December; duty relief likely from mid-2027

The India-EU free trade agreement is now expected to be signed in mid-December 2026 and to enter into force around mid-2027, the chair of the European Parliament's foreign affairs committee said. Buyers should not count on duty-free shipments between India and the EU in the first quarter of 2027^1, 3.

David McAllister led an EU parliamentary delegation to India this week. He told the Times of India that a consent vote in the European Parliament is expected in spring 2027. That would clear the way for the deal to apply by mid-2027, he said, with Prime Minister Narendra Modi expected in Brussels for the signing ceremony¹.

That is later than the window Indian exporters were working to. Commerce Minister Piyush Goyal said on 22 October that the deal could become operational four to five months after signature. He expected it to be signed before the end of the year⁵. On McAllister's sequence, the first preferential rates take effect around mid-2027¹.

What is confirmed

Talks concluded on 27 January 2026². On 11 September 2026 the European Commission put proposals to the Council for the signature and conclusion of the agreement, seeking authorisation². The package includes schedules of commitments showing when each rate falls and when it applies, EU ambassador Jean-Eric Paquet said³.

Goyal said the deal had unanimous backing from the 27 member states "through the relevant process" and expected it to be signed by the end of 2026⁵. Paquet said Modi's visit to Brussels is proposed for mid-December³.

What is not confirmed: the exact signing date, the date of the Parliament's consent vote and the entry-into-force date. The Commission's published pages do not carry these dates². The spring 2027 vote and the mid-2027 start are McAllister's expectations, not an agreed timetable¹. He said: "Though Parliament cannot amend the text of the agreement, our consent is required before it enters into force"¹.

Ratification route

The approval route described for the deal runs through a Council of the EU decision, consent from the European Parliament and clearance by India's Union Council of Ministers. No national parliamentary votes are listed⁶. The investment protection agreement is separate and still under negotiation^2, 3.

The Commission links the first duty cuts to entry into force, not to signature. Paquet said 99% of the trade India has with Europe "will be rate-free upon entry into force"³. The Commission has not said it will apply the trade chapter provisionally before then².

What gets cheaper

For Indian exporters, published accounts of the deal put EU duties of 12% to 17% on textiles, apparel, leather and footwear on a path to elimination. Duties of up to 44% on machinery, 22% on chemicals and 11% on pharmaceuticals would also go⁶.

For Indian buyers of EU goods, the Commission says the deal eliminates or reduces tariffs on over 96% of EU goods exports, saving around €4 billion a year in duties. Wine, olive oil, chocolate and pastries are covered². Published accounts say Indian duties of up to 110% on EU cars fall to 40% and later to 10%, for up to 250,000 vehicles⁶.

The headline numbers differ. Goyal put duty-free access at 93% of Indian shipments⁵. Paquet said 99% of India-EU trade would be rate-free at entry into force³.

Preference will not be automatic. Preferential rates need proof that goods meet the agreement's own origin rules, and each free trade agreement sets its own criteria⁷. The September package sets out the tariff rates and reduction dates; origin claims must still meet the agreement's rules of origin^3, 7.

Carbon charges stay

The EU carbon border levy is a separate law, not part of the tariff deal. CBAM has applied in its definitive form since 1 January 2026 to imports of cement, iron and steel, aluminium, fertilisers, electricity and hydrogen⁴. Duty relief at entry into force will not remove it.

Indian metal exporters face a second carbon charge sooner. The UK CBAM starts on 1 January 2027 and London has ruled out exemptions for free trade partners such as India⁸. India has reserved the right under the India-UK FTA to rebalance concessions if the levy materially damages Indian metal and engineering exports⁸.

What to do now

• Do not price duty-free EU procurement into the first half of 2027. Tie any duty-sharing clause to the entry-into-force date published in the EU Official Journal.
• Build origin evidence now: supplier declarations, bills of material and the product-specific rule for each line. Preference depends on documentation, not intent⁷.
• Cost CBAM separately from duty, and model the UK levy from 1 January 2027^4, 8.
• Track the Council authorisation and the Parliament's consent vote^2, 1.