A historic agreement between the EU and India: 4 billion less in tariffs

28 January 2026

On January 27, 2026, a historic free trade agreement was signed between the European Union (EU) and India, marking a turning point in trade relations between two of the world’s largest economies. The partnership was described as “the most important ever” by European Commission President Ursula von der Leyen and “the mother of all agreements” by Indian Prime Minister Narendra Modi.

The agreement comes after almost twenty years of negotiations that began in 2007, were interrupted, and then resumed in the last two years. The final result is an ambitious pact that aims to liberalize trade, strengthen economic cooperation, and consolidate a strategic relationship in an international context marked by geopolitical tensions and protectionist pressures.

At the heart of the agreement is the reduction or elimination of customs duties on a large scale. Estimates indicate that the tariff measures will lead to total savings of around €4 billion per year for European exports to India. Over 96% of goods exported from the EU to the Indian market will benefit from tariff cuts, with positive effects for sectors such as engineering, chemicals, pharmaceuticals, automotive, and agri-food.

For India, the reduction in EU tariffs opens up new opportunities for its textiles, jewelry, leather goods, and various manufactured goods, facilitating access to the European internal market.

Although already signed, the agreement will have to undergo the usual internal ratification process in EU member states and India before it can fully enter into force, with operations expected to begin around 2027.

Thanks to the reduction in tariffs, importing Indian products becomes cheaper and more accessible, boosting the competitiveness of European companies.

Companies interested in importing will benefit from wider margins, an expanded range of products on offer, and the opportunity to explore new commercial partnerships in the area.

To reduce the risk of delays and non-compliance, relying on an expert certification body such as Ente Certificazione Macchine makes all the difference. Thanks to a specialized team, ECM offers a comprehensive service that supports companies throughout the entire import process. Our activities include:

  • Pre-shipment inspections directly at the manufacturer or shipper;
  • Thorough review of documentation;
  • Product compliance checks to ensure compliance with EU regulations;
  • Assistance during customs clearance, to resolve any issues.

The ECM Srl laboratory has modern equipment and qualified technical staff, capable of performing tests with the utmost precision.

Thanks to our many years of experience, we are able to offer targeted and highly qualified support. Working with ECM means preventing problems, avoiding additional costs, and verifying that products comply with regulations even before they arrive at customs. Our goal is to support companies in importing safely, minimizing risks, and optimizing customs clearance times.

With ECM, you can count on a reliable partner for a smooth process with no surprises. Contact us to find out how we can support you in your import process!

Write to: Damiano Pignalosa (for Italy) – damiano.p@entecerma.it | Marzia Pellegrini (for abroad) – marzia.p@entecerma.it.

TOP