India-EU FTA legal scrubbing completed, signing expected by year-end: Govt sources

India and the European Union are on track to sign a Free Trade Agreement (FTA) by the end of 2026, following the completion of the legal scrubbing process, according to government sources.

The European Union is currently working through its internal approval and translation procedures. Both India and the EU have reaffirmed their commitment to finalizing the remaining steps for the trade agreement within the specified timeframe. The completion of legal scrubbing represents a key advancement toward the finalization of the deal, which was jointly announced by Indian Prime Minister Narendra Modi and European Commission President Ursula von der Leyen on January 27.

This agreement is considered a major milestone for economic and trade ties between the two entities. Negotiations for the FTA resumed in 2022, aiming to establish a balanced and modern trade partnership after years of discussions. The current progress indicates the agreement is moving toward its final stages, with the legal review concluded and the EU managing its internal processes.

The economic relationship between India and the EU is substantial. In 2024-25, trade in goods reached approximately $136.54 billion, with India's exports valued at $75.85 billion and imports at $60.68 billion. Trade in services amounted to $83.10 billion in 2024. Together, India and the EU represent about 25 percent of global GDP and nearly a third of global trade, underscoring the significance of the proposed agreement.