India-EU trade deal could take effect in 4-5 months: What Goyal wants businesses to do now

New Delhi: Commerce and Industry Minister Piyush Goyal expects the India-European Union Free Trade Agreement (FTA) to be signed by the end of 2026 and take effect within four to five months. He has urged Indian and German companies to begin preparing for the deal.

Speaking at an India-Germany business roundtable in Berlin on Thursday (October 22), he urged companies to begin identifying buyers, finding business partners and exchanging product samples and quality requirements ahead of the agreement’s implementation.

“This is the time we need to see businesses start probably doing sampling, exchanging notes of quality required, exchanging pricing, get everything in order so that when the trade agreement comes into effect, we be the first off the block, get the maximum advantage of this agreement,” he said.

He said the agreement could be signed soon, subject to the necessary procedures. He expressed confidence that the signing would take place before the end of the calendar year and that businesses could start using the new trade terms within four to five months.

‘Mother of all deals’ took 13 months to finalise

Goyal referred to European Commission President Ursula von der Leyen’s description of the India-EU FTA as the “mother of all deals”. He said that negotiations had taken around 20 years to reach this stage, although the agreement had been finalised during the last 13 months.

“You rightly mentioned Ms. von der Leyen’s comment about India and EU FTA being the mother of all deals. It took 20 years, but I can assure you the agreement really got finalised in the last thirteen months,” he said.

The conclusion of negotiations was announced on January 27. The minister credited the commitment of India and the 27-member European Union to completing the talks.

He said businesses should use the time before implementation to establish commercial partnerships and prepare their operations. Companies that begin talks with potential customers and suppliers early would be better placed to benefit from the agreement when it comes into force.

Germany invited to strengthen industrial cooperation

Highlighting manufacturing, technology, infrastructure and skill development as areas for closer cooperation, Goyal invited German companies to explore investment and business opportunities in India.

He said Germany’s technical expertise and industrial capabilities complemented India’s infrastructure development, digital strengths and skilled workforce. Greater cooperation could help businesses in both countries improve their competitiveness and access new opportunities.

The minister also called for stronger India-Germany cooperation on supply-chain resilience as economic uncertainty across the world affects trade and business planning. He said both countries could work together to make supply chains more reliable while keeping their economies open to international trade.

Economic security, the green transition and emerging technologies were among the areas he identified for closer collaboration. He also emphasised the importance of trust in commercial relationships.

AI and semiconductors among priority areas

Goyal said that the India-Germany partnership had gained momentum under Prime Minister Narendra Modi and German Chancellor Friedrich Merz. Cooperation in artificial intelligence and semiconductors has become an important part of the relationship.

He acknowledged the role of European Union Trade Commissioner Valdis Dombrovskis and other EU trade ministers in advancing the trade negotiations.

Goyal urged businesses to turn the agreement into practical economic gains by bringing trade and investment, manufacturing and research and industry and academic institutions closer together.

During his Berlin visit, the minister also inaugurated the India Center at the German Council on Foreign Relations. The centre aims to strengthen ties between India and Germany and improve cooperation among stakeholders in both countries.

(With ANI inputs)