FTA with India to enter into force in 2027, says EU ambassador Jean-Eric Paquet

India and the European Union are pushing to conclude their long-negotiated free trade agreement by the end of 2026, aiming to bring the landmark pact into force in 2027 while expanding cooperation across defence, maritime security, and supply chain resilience.

Describing the pending framework as an "absolute game changer," European Union Ambassador to India Jean-Eric Paquet emphasised that its impact extends far beyond traditional tariff cuts, setting the stage for a strategic alignment designed to withstand global disruptions.

“Within this space, we could trade more freely, strengthen supply chains through trade and investment, make them more resilient and reduce strategic dependencies,” Paquet said.

The envoy noted that the agreement goes well beyond standard commercial exchanges, serving as a structural bridge to align technological innovation and economic security between both economies. He stressed that under this framework, "India's sovereignty and Europe's strategic autonomy reinforce one another."

The push to fortify industrial supply chains through the FTA and the parallel Investment Protection Agreement is also expected to provide a direct boost to defense collaboration and maritime security initiatives.

“The work we undertake to facilitate and strengthen our supply chains through the FTA and the Investment Protection Agreement would also greatly benefit our respective defence industries,” Paquet stated.

Referring the India-EU Security and Defence Partnership established earlier, Paquet highlighted that leaders on both sides recognise the necessity of deepening security cooperation in tandem with bilateral commerce.

While negotiators work toward finalising the federal text by late 2026, Paquet pointed out that ground-level implementation will rely heavily on execution across India’s states and Union territories. With bilateral merchandise trade standing at $136.54 billion and services trade reaching $83.10 billion in 2024-25, both sides view the 2027 rollout as the foundation for a vastly expanded economic partnership.