India and the EU are finalizing their free trade agreement, with a legal review nearing completion and implementation expected by early 2027. This pact aims to open 27 European markets, offering significant export opportunities for Indian sectors, including leather, which currently faces limited geographic diversification.
India and the European Union are moving closer to a comprehensive free trade agreement, with officials confirming that the complex legal review process is set to finish within the next 15 to 20 days. This update follows the initial conclusion of negotiations earlier this year and signals a structured path toward final ratification by the European Commission and Parliament. Commerce and Industry Minister Piyush Goyal is scheduled to lead a business delegation to Brussels in mid-July to engage with European counterparts across trade, digital technology, and foreign affairs. These meetings are intended to maintain momentum for the agreement, which remains a key pillar of India’s strategy to increase its global trade footprint.
The government is aiming for the deal to become operational in the first quarter of 2027. If successful, this agreement would provide Indian businesses with preferential access to 27 developed nations, potentially reducing trade barriers and lowering costs for exporters. For investors, the significance lies in the potential for increased export volumes and better margins for industries that have traditionally struggled with high dependence on a narrow set of international buyers.
The leather industry has been highlighted as a primary beneficiary of this expanded market access. Currently, India’s leather exports stand at approximately USD 4 billion to USD 4.5 billion, with about 77% of these shipments concentrated in just 15 countries. Government officials are encouraging the sector to diversify its reach and scale exports to USD 15 billion within the next five to six years. Success in this goal will likely depend on the industry’s ability to improve product design, finishing, and brand building to compete with established global players in the European market.
Beyond the European Union, India is simultaneously working to expand its trade network through several other channels. Negotiations with Canada are progressing with a target for completion by the end of 2026. Furthermore, India is continuing to strengthen its trade ties with the Gulf Cooperation Council and is actively engaged in discussions with major economies including Mexico and Brazil. The primary monitorable for investors moving forward will be the official ratification timeline by the European Parliament, which remains a crucial hurdle before the deal can formally enter into force.