The EU–India Free Trade Agreement: A Structuring Development for Legal Transactions and Cross-Border Investments

The announcement of the conclusion of a Free Trade Agreement (FTA) between the European Union and India represents a major milestone, both legally and economically. Described by Ursula von der Leyen as the “mother of all deals,” this partnership aims to establish a more seamless, predictable, and balanced trade framework between two economic powerhouses representing nearly 2 billion consumers.

What are the key features of this agreement?

• A strengthened legal framework, offering increased legal certainty and predictability for economic operators engaged in trade and industrial activities between the EU and India.
• The gradual elimination of customs duties, potentially amounting to €4 billion on EU exports, significantly reshaping bilateral trade flows.
• A phased and regulated liberalisation, covering 96.6% of EU exports to India, alongside the reduction or removal of tariffs on 99.5% of Indian imports into the EU, over a transition period of up to seven years.
• A specific mechanism for the automotive sector, with a progressive reduction of customs duties from 110% to 10%, subject to an annual quota of 250,000 vehicles.
• The gradual lifting of tariff barriers in key sectors such as machinery, chemicals, pharmaceuticals, steel, and iron, with phase-out schedules extending up to ten years.
• A controlled opening of the Indian agri-food market, with a gradual reduction or removal of historically high duties on European products.

A momentum for investment

This agreement sends a strong signal of regulatory and economic convergence, creating a favourable environment for the development of strategic partnerships, cross-border M&A transactions, and the establishment of joint ventures between India and Europe.

Its implementation remains subject to the approval of the European Parliament, the EU Member States, and the Indian government, but it already marks a structuring step forward in France–India bilateral relations.

Our expertise in Indo-European transactions

In recent months, we have witnessed a growing interest from Indian groups targeting the French market, particularly in strategic industrial and technology sectors. Thanks to our Indian Desk, we provide tailored legal support for their market entry or acquisition strategies.

We have just completed a legal due diligence for an Indian client acquiring a European group with operations in France—a cross-border deal that perfectly illustrates the new dynamics this agreement is set to reinforce.