India and EU Aim to Conclude FTA by December 18

India and the European Union are intensifying efforts to finalize the Free Trade Agreement (FTA) by December 18, 2026, coinciding with Prime Minister Narendra Modi's anticipated visit to Brussels. Sources indicate that both parties aim to sign the pact during Modi's return from the G20 summit in the United States, with discussions progressing rapidly on both sides.

The urgency surrounding the FTA stems from the European Commission's proposal for a fast-track procedure to expedite the approval process through the Council of the European Union. This approach is intended to overcome potential delays associated with translating the agreement into 24 official EU languages, which could extend ratification by over a year. The FTA, first announced on January 27, 2026, is seen as a crucial step in enhancing trade relations amid a turbulent global geopolitical landscape.

Commerce Secretary Rajesh Agrawal is scheduled to visit Brussels this week to address procedural matters related to the FTA. His visit follows Commerce Minister Piyush Goyal's recent tour of Germany and the Netherlands, where he emphasized the transformative potential of the agreement in expanding market access and strengthening supply chains. Goyal's engagements included meetings with key economic officials in Germany, highlighting the importance of this trade pact.

The implications of the FTA are significant for both India and the EU, as it is expected to create the world's largest free trade zone, covering a quarter of the global population and 25% of the world's GDP. The agreement is projected to be operational by early 2027, further solidifying India’s position as the EU's ninth-largest trading partner for goods and sixth for services. In 2025, bilateral trade in goods reached EUR 118 billion, with India exporting machinery, chemicals, textiles, and more to the EU.

Looking ahead, the timeline for the FTA remains fluid, with the Council's approval being a critical next step before the signing can take place. The ongoing discussions and negotiations signal a renewed commitment from both India and the EU to enhance their economic partnership, with the potential for further agreements on investment protection and cooperation in various sectors.