India-EU FTA: Will Sensex, Nifty rally because of European Union trade deal?
India Today
The deal aims to open up India's large and closely protected market to freer trade with the 27-nation European bloc, which is also India's biggest trading partner.
India and the European Union (EU) have finalised a long-awaited trade deal that will cover nearly a quarter of the world’s economy. The agreement is set to be announced today, ending almost two decades of on-and-off talks between the two sides.
The deal aims to open up India’s large and closely protected market to freer trade with the 27-nation European bloc, which is also India’s biggest trading partner.
Trade between India and the EU stood at $136.5 billion in the financial year ended March 2025. The deal comes at a time when both sides are looking to reduce risks linked to changing global trade ties.
In recent days, the EU has also signed a major trade pact with the South American Mercosur bloc, following agreements last year with Indonesia, Mexico and Switzerland. India, too, has been active on this front, finalising trade pacts with Britain, New Zealand and Oman during the same period.
On Tuesday, Dalal Street resumed trading after a holiday break for Republic Day. The session began on a weak note and extended recent losses.
In early trade, the Sensex slipped more than 400 points and the Nifty fell close to 100 points. Both indices later recovered to trade in the green for a brief period but slipped again.
Gold and silver remain firmly in an uptrend, but analysts warn the rally is getting stretched. With prices at record levels, should you buy precious metals or avoid them?
Described as the "mother of all deals", India–EU trade pact is expected to boost trade, lower barriers, and deepen economic ties between the two sides.
With India's e-commerce ecosystem expanding rapidly, expectations from Budget 2026 are centred on regulatory simplicity and digital infrastructure to support millions of online sellers and platforms.
In a joint statement, Adani and Embraer said they had signed a memorandum of understanding (MoU) to explore cooperation across aircraft manufacturing, supply chains, aftermarket services and pilot training.
The deal aims to open up India's large and closely protected market to freer trade with the 27-nation European bloc, which is also India's biggest trading partner.
Senior EU leaders have described the proposed agreement as one of the biggest and most complex trade deals the bloc has ever attempted, with some calling it the "mother of all deals".
India-European Union trade negotiations have reached a decisive stage, with New Delhi offering major tariff cuts on European cars and both sides signalling readiness to seal a politically significant deal that could reshape trade, investment and supply chains.