India and the European Union agreed to grant each other Most Favoured Nation (MFN) status for five years from the free trade agreement’s effective date, per the draft released February 27, 2026.
Key Trade Provisions
The pact allows 93% of Indian exports duty-free access to the 27-nation bloc, while EU luxury cars and wines gain cheaper entry to India. Sensitive sectors like dairy, rice, and beef excluded from liberalization; digital trade barriers targeted with WTO-aligned rules.
Implementation Safeguards
Includes mediation for disputes, annual import data sharing, streamlined customs/food safety, and paperless trade commitments. Provisions bind post-ratification, preventing new WTO-illegal restrictions.
Strategic Impact
Called the “mother of all deals,” concluded January 27 after 20 years—boosts India’s $120B+ EU trade while securing market access amid global protectionism.
