India-EU Trade Deal Imminent: $5 Billion Export Boost Expected, Auto Tariffs to Drop

• India and the European Union are set to announce a Free Trade Agreement (FTA) today, January 27, 2026, after 18 years of negotiations.
• Experts project the FTA could boost India's exports by an additional $3 to $5 billion, primarily in sectors benefiting from reduced tariffs.
• Key Indian exports to the EU in FY25 included refined petroleum products ($15 billion), electronic goods ($11.3 billion), and textiles ($7.6 billion).
• India plans to significantly cut import duties on European cars, with duties on some EU-made cars above 15,000 Euros potentially dropping from 70-110% to 40% immediately, then gradually to 10%.
• The deal aims to strengthen economic ties, boost India's economy, and create employment, though full implementation and benefits will take time.

Why It Matters: The India-EU FTA is set to boost Indian exports by up to $5 billion and significantly reduce auto import duties.