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India EU FTA could touch 2 billion people while covering a third of world trade Commerce Ministry says
India
Published on 14 May 2026
Tariffs on some cars may plunge in year one
India’s Commerce Ministry says the India-EU Free Trade Agreement will cover nearly one-third of global trade and potentially affect about 2 billion people, calling it one of the biggest deals ever. Officials describe it as “mother of all deals,” reaching almost one fourth of global GDP and around $11 trillion in trade. The pact goes beyond tariffs, including services, digital trade, telecom, financial services, IP and regulatory practices. Businesses also flagged automotive tariff reductions and asked for clear rollout timelines.
- FTA expected to cover nearly one-third of global trade
- About 2 billion people stand to be impacted, officials say
- Deal size cited as almost one-fourth of global GDP
- Services exports at $421 billion vs goods at $442 billion this year
- Automotive import duty on cars above $40,000 may fall from 110% to 40% in year one
- EU businesses study: 5,833 firms in India, EUR 186 billion turnover in FY24
Read the full story at The Economic Times
This summarization was done by Beige for a story published on 
The Economic Times