India advances EU trade deal and Canada talks

India is taking concrete steps to deepen its trade integration with major partners, most notably through a recently concluded Free Trade Agreement with the European Union and a planned high-level trade outreach to Canada. These moves signal a shift in New Delhi’s trade approach toward wider market access and tariff reduction.

Negotiations on the India–European Union Free Trade Agreement officially concluded in January 2026, bringing to a close talks that had been underway for nearly two decades. The agreement sets out substantial tariff reductions on both sides, covering a large share of bilateral trade.

India’s total offer in the EU FTA covers about 92.1% of tariff lines and 97.5% of trade value. This indicates that almost all of India’s trade with the bloc will be subject to reduced or eliminated tariffs once the agreement is implemented.

On the European side, the EU will eliminate duties on about 70.4% of tariff lines immediately. This tariff removal is expected to cover nearly 90.7% of India’s export value to the EU, providing Indian exporters with broader duty-free access to one of their key markets.

The negotiated outcome reflects a significant degree of market opening by both India and the EU. By covering a high share of tariff lines and trade value, the FTA is structured to influence a wide range of goods and sectors involved in India–EU commerce.

The scope of the EU’s duty elimination, in terms of both tariff lines and share of India’s export value, points to potential changes in India’s export profile to the bloc. With nearly 90.7% of Indian exports to the EU covered by the immediate duty cuts, a broad spectrum of products is likely to benefit from improved price competitiveness in the European market.

For India, offering tariff concessions on 92.1% of tariff lines, corresponding to 97.5% of its trade value with the EU, suggests a willingness to integrate more deeply into global supply chains tied to the European market. The agreement may reframe how Indian producers and exporters engage with European demand and standards.

In parallel with its EU engagement, India is also pursuing closer trade links with Canada. Indian Commerce Minister Piyush Goyal is scheduled to lead a large delegation to Canada at the end of May 2026 to explore trade opportunities. This visit follows a recent Canadian trade mission to India.

The planned delegation underscores an active bilateral dialogue on trade and investment between India and Canada. By building on the Canadian mission’s visit, Indian officials aim to identify sectors and projects that could benefit from expanded commercial cooperation.

Taken together, the completed EU FTA negotiations and India’s upcoming high-level engagement with Canada illustrate how New Delhi is broadening its trade relationships. These initiatives indicate a policy direction focused on wider market access and reduced tariff barriers with major economic partners.