India and the EU finalize a free trade pact

The Hindu
The Hindu 15m
India and the European Union signed a free trade agreement on January 27, 2026, creating a combined market billed at roughly two billion people.
India and the EU finalize a free trade pact
A What happened
UN Secretary-General Antonio Guterres referenced the India–EU free trade agreement during a January 30, 2026 press conference where he outlined his priorities for 2026 and argued for “multi-polarity” in global affairs, contrasting it with a world dominated by one or two major powers.

Why it matters

  • Sets a new baseline for India–EU economic integration: A concluded FTA formalizes long-term rules for cross-border commerce between the two blocs, tightening institutional ties beyond ad hoc sector deals.

  • Raises the strategic weight of trade policy in global alignment: A large India–EU market arrangement strengthens the role of trade agreements as instruments for building durable international partnerships.

Topics

World & Politics International Affairs Diplomacy Trade & Tariffs

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