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European Union trade chief Maroš Šefčovič said a trade deal with India is “very close” as the bloc aims to reduce steep tariffs for European companies in one of the fastest growing, but heavily protected, markets in the world.
In an interview with Euronews, Šefčovič said the two sides are “checking their final numbers” and referred to the agreement as the “mother of all deals” as it looks to open a market of 1.4 billion people for European exports and services.
India maintains duties as high as 150% in some sectors, effectively shutting European exporters out of large parts of the economy.
“In some sector, India has tariff going up to 150%. And therefore, big parts of the economy has been completely closed off to the European exporters,” Šefčovič told Euronews in New Delhi ahead of an EU-India summit, adding: “Now the big benefit will be opening the economy.”
If concluded, the agreement would create a free-trade area covering 2 billion people and lift Indian customs duties on imports from Europe. Not all sectors will be included, Šefčovič said.
“We decided to keep the most sensitive sectors for both of us outside of this deal so we can really focus on the positive outcome.”
Around 6,000 European companies currently operate in India. Trade in goods between the EU and India has surged by almost 90% over the past decade, according to Commission figures, with €48.8 billion of goods exported in 2024.
“This is the largest trade deal ever,” Šefčovič said.
The agreement would support the EU’s broader strategy to diversify trade ties and reduce reliance on the US and China.
He added that the agreement “would help us [the EU] have an insurance against the global trade turmoil.”
India is currently operating under prohibitive tariffs of 50% under the Trump administration, which last year added an additional 25% rate as a punishment for Indian purchases of Russian oil.
For Brussels the deal would also be as a signal to other partners, amid concerns that delays in ratifying the Mercosur agreement are weighing on the EU’s credibility as a trading power.
Negotiations have been difficult. Indian counterparts are “very tough negotiators,” Šefčovič said, adding: “They had a high tariff, they are a developing country, and we wanted to respect their specificity, and at the same time, to protect European general interest.”
Sustainability remains a key sticking point, particularly India’s opposition to the EU’s carbon border tax.
The free-trade agreement could be announced Tuesday during the EU-India summit in New Delhi.
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