Global Trade • March 2026

India and EU Sign Landmark Free Trade Agreement After Two Decades

A historic deal reshapes global trade dynamics amid rising protectionism and economic fragmentation.

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.

Population Covered

2 Billion

Global GDP Share

~25%

Agreement Timeline

20 Years

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