India and the European Union are working to finish the legal scrubbing of the text of the proposed free trade agreement (FTA) within 15-20 days, Union Commerce and Industry Minister Piyush Goyal said on Monday. After the legal scrubbing, both sides are expected to sign the agreement by the end of this year and may implement it next year.
Timeline for Signing and Implementation
Goyal stated that the legal review of the FTA text is progressing rapidly. "We are working to finish the legal scrubbing of the text in 15-20 days," he told reporters in New Delhi. The minister expressed optimism that the agreement would be signed by the end of 2026, paving the way for implementation in 2027.
Background of the Negotiations
India and the EU have been negotiating the FTA, officially called the India-EU Trade and Investment Agreement, for over a decade. The talks gained momentum in 2022 after a hiatus, with both sides aiming for a comprehensive deal covering goods, services, investment, and intellectual property rights.
Key Benefits for India
The FTA is expected to boost bilateral trade, which stood at around $120 billion in 2025-26. India seeks better market access for its textiles, pharmaceuticals, and IT services, while the EU wants lower tariffs on automobiles, wines, and dairy products. Goyal highlighted that the agreement would create a level playing field for Indian exporters and attract more European investment.
Challenges and Next Steps
Despite progress, some contentious issues remain, including data security norms, geographical indications, and tariff reduction schedules. However, Goyal expressed confidence that both sides would resolve these through dialogue. "We are committed to a balanced and mutually beneficial outcome," he added.
The legal scrubbing involves a thorough review of the draft text by legal experts from both sides to ensure consistency with domestic laws and international obligations. Once completed, the text will be submitted for formal approval by the EU Council and the Indian Parliament.
