India's Commerce and Industry Minister Piyush Goyal has expressed optimism that the recently finalised Free Trade Agreement (FTA) with the European Union will enter into force later this year. 

Speaking at a joint press conference in New Delhi on 27 January 2026, Goyal announced that the pact, concluded on Tuesday, will undergo legal scrubbing on a fast-track basis.

He highlighted the agreement's comprehensive scope, noting it encompasses nearly 99 per cent of India's exports to the EU and over 97 per cent of EU exports to India. This unprecedented coverage, Goyal emphasised, reflects the pact's depth and strength, while addressing economic asymmetries through transitional periods.

Goyal praised the visionary leadership of Prime Minister Narendra Modi, European Commission President Ursula von der Leyen, and European Council President Antonio Costa. Their efforts, supported by officials from both sides, have laid the foundation for a robust economic, geopolitical, and strategic partnership suited to the 21st century.

Describing the deal as "the mother of all deals"—a phrase attributed to von der Leyen—Goyal pointed out it covers 25 per cent of global trade. It marks India's eighth FTA under Modi's leadership, all with developed nations, collectively involving agreements with 37 such countries in just four years.

In the automotive sector, Goyal noted a balanced outcome. Indian manufacturers of smaller, low-cost vehicles have secured protections for their interests, while German firms gain phased access to priority areas, fostering mutual satisfaction.

This sectoral harmony, he said, repeats across industries, offering unprecedented market access. The FTA bolsters India's Make in India initiative and supports EU industry, while unlocking investment opportunities. With Europe as a $20 trillion-plus economy and India poised to reach $30 trillion by 2047, the pact promises shared prosperity for two billion people.

The breakthrough follows two decades of effort, with talks launched in 2006 and 16 rounds held before stalling in 2013. Relaunched in mid-2022 amid elections, serious progress accelerated after von der Leyen's February 2025 visit with EU trade commissioners.

Goyal described the result as a balanced, equitable win-win. India gains significantly in labour-intensive sectors such as marine products, chemicals, footwear, leather, plastics, rubber, textiles, apparel, gems, jewellery, furniture, sports goods, and toys.

Conversely, EU industries secure entry into India's fast-growing market in innovation, technology, precision engineering, and partnership areas where India seeks advanced collaborations.

Based On ANI Report