The European Union and India concluded negotiations on a free trade agreement on 27 January 2026 at the 16th India-EU Summit. According to a September 2026 law firm briefing, the European Commission asked the Council on 11 September 2026 to authorise signature, signing is expected in December 2026 and entry into force in early 2027, subject to consent from the European Parliament and ratification in India. It is reported to cover goods, services, temporary movement of professionals, financial services and telecoms, while an investment protection agreement is being negotiated separately. Until the agreement is in force, the existing Indian tariffs, import rules and standards continue to apply. A Spanish company should plan its Indian entry on current rules, model the agreement's benefits as upside, and watch the final text for rules of origin and the schedule of tariff cuts.
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Key facts
| Concluded | 27 January 2026 at the 16th India-EU Summit |
|---|---|
| Next steps reported | Council authorisation to sign requested 11 September 2026; signature expected December 2026 |
| Entry into force | Reported as early 2027, after European Parliament consent and Indian ratification |
| Scope reported | Goods, services, temporary entry of professionals, financial services, telecoms |
| Investment | A separate investment protection agreement is being negotiated |
| Until in force | Current Indian duties, import licences and standards apply |
| Rules of origin | Will decide who benefits; read the final text |
| Planning rule | Do not price a project on tariff cuts that are not yet in force |
Where the agreement stands
The agreement has three stages still to run. The European Commission has asked the Council to authorise signature, and a signature is expected around December 2026. The European Parliament must then give its consent, and India must complete its own ratification and the legal steps for entry into force. Reports point to early 2027 for entry into force, but the date can move, and some parts such as investment protection are on a separate track. We rely on a September 2026 briefing by Cyril Amarchand Mangaldas for this timetable, and we recommend that you confirm it against the Commission and the Indian Ministry of Commerce before a decision turns on it.
What it is reported to cover
| Area | What to expect | Why it matters to a Spanish company |
|---|---|---|
| Goods | Staged tariff reductions and removal on many lines | Machinery, auto parts, ceramics, food and wine are Spanish interests; check the schedule by tariff line |
| Services | Market access commitments and rules for professional services | Engineering, consulting, infrastructure and IT services |
| Movement of professionals | Temporary entry and stay for defined categories | Fewer visa frictions for transferred staff; visa rules still apply |
| Financial services and telecoms | Market access and regulatory cooperation | Banks, insurers and equipment suppliers |
| Regulatory cooperation | Standards, customs facilitation and non-tariff barriers | Product certification, labelling and testing |
| Investment | Protection under a separate agreement under negotiation | Stronger protection than contract alone, once in force |
For Spanish exporters to India
A Spanish company that sells to India without a local company pays Indian customs duty at the border, deals with the importer of record, meets Indian product standards and certifications and receives payment in line with exchange control. Duties on some Spanish products are high today, which is a reason many groups choose to produce or assemble in India. If the agreement cuts duties, the case for local production on tariff grounds weakens for some lines but remains strong for others such as products that benefit from local sourcing rules or from production-linked incentives. Do not price a contract or a factory decision on tariff cuts that have not entered into force.
For Spanish investors in India
The agreement is not the legal basis for investment in India: an Indian subsidiary still needs the FDI route, FEMA filings and Indian company law compliance. The agreement could improve services access and professional mobility and could be paired with an investment protection agreement. Until then, protection depends on the contract, the arbitration clause and the corporate structure. See contracts and arbitration and structure options.
Rules of origin and documentation
Tariff preferences apply only to goods that meet the rules of origin, usually by wholly obtaining the goods, by sufficient processing or by a change in tariff classification or value content. A Spanish company with a supply chain across several countries should map where its inputs come from and keep records that can prove origin. Importers in India will ask for the origin statement, and customs may verify it. Start the mapping now so that you can claim preferences from the first day.
A planning checklist
- Identify your products by tariff line and note the current Indian duty.
- Watch the final text and the tariff schedule for your lines and the phase-in period.
- Map your inputs and origin so that you can qualify.
- Decide whether local production or assembly is justified without any tariff cut.
- Plan the Indian entity on current rules and treat the agreement as upside.
- Check whether your professionals will benefit from the temporary movement rules and keep the usual visa plan.
- Review contracts that quote duty-inclusive prices so they can adjust when duties fall.
A note of caution
Trade agreements often take longer than announced to come into force, and tariff schedules usually phase in over years. Rely on the text, not on press summaries, and ask your customs adviser to confirm the rate on your product line. The details on this page come from secondary reports and should be verified before they support a commercial decision.
Official sources
Check the rules at the primary sources: Income Tax Department (India), Reserve Bank of India, Ministry of Corporate Affairs, Agencia Tributaria (Spain), Spanish Ministry of Economy, Trade and Business and the Ministry of External Affairs (India).
Frequently asked questions
Has the EU-India trade agreement been concluded?
Negotiations were concluded on 27 January 2026 at the 16th India-EU Summit, according to reports. Signature and ratification are still to come.
When will it be signed?
Reported as expected in December 2026, after the Commission asked the Council on 11 September 2026 to authorise signing.
When will it enter into force?
Reported as early 2027, subject to European Parliament consent and Indian ratification. The date can move.
What does it cover?
Reported coverage includes goods, services, temporary movement of professionals, financial services and telecoms.
Is investment protection included?
A separate investment protection agreement is being negotiated alongside it.
Do I wait for the agreement before setting up?
No. Plan on current rules and treat the agreement as upside.
Will duties on Spanish goods fall immediately?
Not necessarily. Tariff cuts are usually phased in by product line and need the rules of origin to be met.
Does the agreement replace FDI rules?
No. A Spanish investor still follows the FDI route, FEMA filings and company law.
Where can I check the latest status?
On the European Commission trade pages and the Indian Ministry of Commerce, which publish the signing and ratification steps.
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Last updated 2 November 2026. General information only, not legal or tax advice. Indian and Spanish rules change often; confirm current requirements before acting.