New Delhi [India], September 11 (ANI): In a landmark step towards concluding the highly-anticipated India-EU Free Trade Agreement (FTA), the European Commission has presented its proposals to the Council for the signature, seeking authorization to move the historic pact across the finish line. Once formally approved, the pact will stand as the largest trade agreement ever concluded by either partner, the European Commission said in a statement on Friday.

The EU and India started negotiating an FTA in 2007. The talks were suspended in 2013 and relaunched in 2022, and the negotiations were successfully concluded in January 2026. 

Alongside the free trade agreement, the EU and India are also negotiating agreements on geographical indications and investment protection.

The FTA is expected to come into force by later this year or in the first half of 2027.

Under the established ratification process, the Commission requires authorisation from the Council, followed by the formal consent of the European Parliament, before the agreement can be concluded and enter into force. Indian authorities are simultaneously advancing their own domestic ratification procedures.

The submission marks a major step toward enabling businesses and consumers to tap into the agreement without delay. This step follows a fast-track procedure introduced earlier this year by European Commissioner for Trade and Economic Security Maro efovi.

The mechanism was designed specifically to accelerate the implementation of trade agreements amid mounting geopolitical volatility and intense pressure on global commerce.

"Our focus has been clear from the start: to ensure that businesses and citizens feel the tangible benefits of this landmark FTA as quickly as possible," Maros Sefcovic, Commissioner for Trade and Economic Security, Interinstitutional Relations and Transparency, said.

"Timing matters, which is why we are now following through by submitting our proposals to the Council for signature and conclusion in record time," Sefcovic added. "This agreement brings together two of the world's largest economies - a market of 2 billion people and around a quarter of global GDP. It will very soon start creating new opportunities for both trade and investment."

Once enacted, the agreement will remove or reduce tariffs on 96 per cent of EU goods exports entering India, saving European exporters roughly EUR 4 billion annually in customs duties. The pact is structured to expand reciprocal market access, eliminate unnecessary trade barriers, and establish predictable regulatory standards. 

At present, bilateral trade in goods and services exceeds EUR 180 billion annually, underpinning nearly 800,000 jobs across the European bloc.

The agreement strengthens economic connections with a critical partner in the Indo-Pacific. India ranks as the EU's ninth-largest trading partner in goods, with bilateral merchandise trade reaching EUR 118 billion in 2025. Machinery, transport equipment, and chemicals form the bulk of EU exports to India, while Indian shipments to Europe primarily feature machinery, chemicals, textiles, metals, and refined petroleum products.

Trade in services between the two economies reached EUR 67 billion in 2025, with EU service imports standing at EUR 37.8 billion and exports at EUR 29.2 billion. 

Investment ties also remain substantial, with EU foreign direct investment stock in India reaching EUR 132.8 billion in 2024, compared to EUR 13.7 billion of Indian FDI in the EU. 

While India still accesses tariff benefits under the Generalised Scheme of Preferences, export growth has graduated multiple sectors, leaving approximately 38 per cent of its European exports eligible for those preferences. (ANI)