New Delhi: On Tuesday, Commerce Minister Piyush Goyal announced that the much-anticipated free trade agreement between India and the European Union is expected to be operational by 2026. This statement followed the successful conclusion of negotiations for the landmark trade deal.

Earlier that day, discussions between India and the 27-member EU wrapped up, marking the agreement as a significant milestone, often referred to as the 'mother of all deals'. Once in effect, approximately 93% of Indian exports will benefit from duty-free access to the EU, while imports of luxury vehicles and wines from Europe will see reduced prices in India.

"Every agreement is unique, and this one is exceptional. It will undergo a rapid legal review... We anticipate celebrating the implementation of this agreement within the 2026 calendar year," Goyal stated during a special briefing regarding the visit of the EU Council President and the EU Commission President to India.

The negotiations for this deal have spanned over two decades, Goyal noted.

He highlighted that this pact will create a market encompassing around 2 billion people, bridging India's economy, the fourth largest globally, with the EU, the second largest economic bloc.

Together, India and the EU represent 25% of the world's GDP and account for about one-third of international trade, valued at approximately USD 33 trillion.

Goyal emphasized that the agreement is balanced and fair, providing mutual benefits for industries in both India and the EU.

This trade deal is expected to unlock numerous investment opportunities.

With this agreement, the EU becomes India's 22nd partner in free trade agreements.

Since 2014, the NDA government has established trade agreements with several countries, including Mauritius, the UAE, the UK, EFTA, Oman, and Australia, while also announcing a deal with New Zealand. In 2025, India finalized trade agreements with Oman and the UK and announced the conclusion of a deal with New Zealand.