The EU–India trade agreement: what it means for industrial buyers

After talks that began in 2007, paused in 2013 and restarted in 2022, the European Union and India concluded negotiations on a free trade agreement in January 2026. On 11 September 2026 the European Commission proposed that the Council authorise signature and conclusion.

The remaining steps are adoption by the Council, signature, consent of the European Parliament and the Council's final decision, alongside ratification in India. Current projections point to signature around December 2026 and entry into force in early 2027; neither date is confirmed yet.

The Commission says around 90 percent of tariffs will be eliminated or reduced, saving European exporters about 4 billion euro a year in duties. Indian tariffs of up to 44 percent on machinery and up to 22 percent on chemicals are to be largely removed, and the agreement brings rules of origin, customs cooperation and provisions on services and investment.

For European buyers, the agreement deepens a supply route that already works: equipment engineered and built by the Davey Group in India, contracted, invoiced and supported by VDT Europa OÜ in Estonia. Once the agreement applies, VDT Europa will make sure qualifying goods carry the proof of origin needed for preferential treatment.

Talk to us

European buyers can contact the Davey Group through VDT Europa OÜ in Tallinn, Estonia. Ask an expert at contact@vdteuropa.com, or send tender documents to tenders@vdteuropa.com.