India’s Union Commerce and Industry Minister Piyush Goyal has expressed optimism that the India-European Union Free Trade Agreement (FTA) could become operational within the next four to five months, with the formal signing expected before the end of 2026, subject to the completion of necessary procedures.
Speaking at an India-Germany business roundtable in Berlin on Thursday, Goyal encouraged businesses from both countries to begin preparing for the agreement’s implementation. He urged companies to identify potential customers and partners, exchange product samples, establish quality standards and negotiate pricing arrangements to capitalize on emerging trade opportunities.
The minister noted that negotiations for the agreement were officially concluded on January 27, 2026, following nearly two decades of discussions. He emphasized that significant progress had been achieved during the final 13 months of negotiations, reflecting the commitment of India and the 27-member European Union to strengthening their economic partnership.
Goyal said the agreement would create new opportunities for trade, investment and industrial cooperation, particularly in manufacturing, technology and workforce development. He highlighted Germany’s advanced engineering capabilities and industrial expertise as complementary to India’s growing infrastructure, digital economy and skilled workforce.
The minister also stressed the importance of strengthening supply-chain resilience amid global economic uncertainty. He identified economic security, green technologies, artificial intelligence and semiconductors as priority areas for deeper cooperation between India and Germany.
Goyal credited the leadership of Prime Minister Narendra Modi and German Chancellor Friedrich Merz for advancing bilateral relations. He also acknowledged the contributions of European Union trade officials in bringing the negotiations to a successful conclusion.
During his visit to Berlin, Goyal inaugurated the India Center at the German Council on Foreign Relations, an initiative intended to promote stronger engagement between businesses, policymakers, researchers and academic institutions in both countries.
The proposed trade agreement is expected to strengthen economic ties between India and the European Union, providing businesses with greater opportunities to expand commercial partnerships, attract investment and diversify supply chains once the pact receives the necessary approvals and enters into force.
