India-EU FTA

In the news

• India and the EU to sign their trade deal on 16 December 24 September 2026 · The Hindu

  Negotiated for nearly two decades, closed in January. What does India actually get?

• India-EU trade deal: a 1.64 million tonne steel quota for India, a car quota for the EU 14 September 2026 · Indian Express

  India sends about 4 million tonnes of steel to Europe a year. Only 1.64 million tonnes get a quota. What about the rest?

• India and Belgium sign a defence letter of intent and aim to double trade in five years 4 September 2026 · The Hindu

  Why is a small European economy becoming a defence and chip partner for India?

Key facts

• India-EU trade talks began in 2007, stalled in 2013 and restarted in June 2022. (24 September 2026)
• The EU's Carbon Border Adjustment Mechanism (CBAM), which prices embedded carbon in imports such as steel and aluminium, is a key concern for Indian exporters. (24 September 2026)
• India-EU FTA negotiations were relaunched on 17 June 2022 and concluded on 27 January 2026; the Commission presented the deal to the EU Council on 11 September 2026. (14 September 2026)
• Under the deal India gets an annual EU steel quota of 1.64 million tonnes (0.69 mt FTA-specific and 0.95 mt MFN), against exports of about 4 million tonnes. (14 September 2026)
• Belgian PM Bart De Wever visited India from 2 to 4 September 2026, the first visit by a Belgian PM in two decades. (4 September 2026)
• The two Defence Ministries signed a Letter of Intent; India will appoint a resident Defence Attaché in Brussels and Belgium has appointed one in New Delhi. (4 September 2026)

Previous-year questions

1. 2025 · GS3 · 10 marks What are the challenges before the Indian economy when the world is moving away from free trade and multilateralism to protectionism and bilateralism? How can these challenges be met?
2. 2020 · GS2 · 15 marks What is the significance of Indo-US defence deals over Indo-Russian defence deals? Discuss with reference to stability in the Indo-Pacific region.
3. 2018 · GS2 · 15 marks What are the key areas of reform if the WTO has to survive in the present context of 'Trade War', especially keeping in mind the interest of India?
4. 2018 · GS3 · 15 marks How would the recent phenomena of protectionism and currency manipulations in world trade affect macroeconomic stability of India?
5. 2017 · Prelims 'Broad-based Trade and Investment Agreement (BTIA)' is sometimes seen in the news in the context of negotiations held between India and (a) European Union (b) Gulf Cooperation Council (c) Organization for Economic…