SUMMARY :

• On 27^th January 2026, the EU and India concluded negotiations for a historic, ambitious and commercially significant free trade agreement (FTA), the largest such deal ever concluded by either side.

More details :

FESI are delighted to inform you that the European Union and India have just concluded negotiations on a Free Trade Agreement (FTA).

This is a major milestone and a development that FESI has actively supported and advocated for from day one. An ambitious EU–India FTA has long been one of our key trade priorities, given India’s strategic importance both as a sourcing country and as a growing consumer market for sporting goods.

This agreement is particularly relevant for our sector, given the scale of existing trade flows: in 2024, Indian exports of textiles to the EU amounted to €6.8 billion, while footwear exports exceeded €1 billion.

While we will need to carefully analyse the final legal text once it is published, preliminary discussions with the European Commission are encouraging. Based on these exchanges, our understanding is that:

• Tariff reductions should deliver substantial benefits for sporting goods, in particular for apparel and footwear;
• On rules of origin, the agreement is unfortunately expected to provide for a double transformation rule for apparel;
• Certification of origin will be a key point of attention, with constructive discussions having taken place on alternatives to traditional paper-based certification, raising cautious optimism that a more business-friendly solution can be achieved, subject to confirmation in the final text.

Next steps:

Here are the steps the EU still needs to take:

1. Publish negotiated draft texts
2. Legal revision and translation into all official EU languages
3. Propose the agreement to the Council for the signature and conclusion
4. Adoption by the Council
5. Signing of the agreement between the EU and India
6. European Parliament's agreement to the deal
7. The Council's decision on concluding the deal (essentially allowing it to enter into force)

Once India also ratifies the Agreement, it can enter into force.

FESI will keep members closely informed as more detailed and legally binding information becomes available and will assess the final outcome against FESI’s long-standing policy objectives.

FESI will remain closely engaged with EU institutions, advocating for a swift ratification by the co-legislators and, where appropriate, coordinating with like-minded industry associations to support the timely entry into force of the agreement.

For background, attached is FESI’s position paper on the EU–India FTA, which outlines the industry’s priorities and advocacy efforts throughout the negotiations.

For more information, consult the European Commission’s press release and Q&A.

Attached, you will also find an overview of the EU-India trade flows.

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