India–EU Free Trade Deal Creates World’s Largest Trade Zone

Twenty years in the making, India and the European Union signed a landmark free trade agreement in January 2026, marking one of the most significant developments in global commerce in recent years.

The agreement establishes a vast economic zone covering nearly 2 billion people and accounting for close to 25% of global GDP, significantly expanding trade opportunities across regions.

The deal stands as a major milestone at a time when global markets are facing increasing fragmentation and rising US protectionist policies, positioning India and the EU as key drivers of open trade.