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India-EU Free Trade Agreement Eliminates Tariffs on 96.6% of EU Exports, Grants 5-Year MFN Status

Target:UPSC GS-IIIMPSCSSC GATeachingPrelims HighMains MediumStatic GK Link
28 Feb 2026
~2 min
Source: The Hindu
Key Data:5 years96.6%99.5%2022
Bodies:European UnionMinistry of Commerce and Industry
Practice MCQs from today's news ▸
What This Article Covers

1.The India-EU FTA draft grants reciprocal Most-Favoured-Nation (MFN) status for five years from the deal's enforcement.

2.The agreement eliminates or reduces tariffs on 96.6% of EU exports to India by value and 99.5% of Indian exports to the EU.

3.The pact, concluded after negotiations relaunched in 2022, aims to stabilise the international economic order and deepen strategic ties.

The Big Picture
Prelims · HighMains · Medium

India and the European Union have finalized a landmark Free Trade Agreement (FTA) that includes reciprocal Most-Favoured-Nation (MFN) status for five years and eliminates tariffs on over 96% of bilateral trade. This strategic deal is a significant step for India's economic integration and global supply chain positioning.

Exam Lens

Quick Exam Facts From News

MFN Status Duration5 years
EU Export Tariff Elimination96.6% by value
Indian Export Tariff Elimination99.5% by value
Negotiations Relaunched2022

1-Minute Revision

  • ›MFN Status Duration: 5 years
  • ›EU Export Tariff Elimination: 96.6% by value
  • ›Target this Data: Tariff elimination covers 96.6% of EU exports and 99.5% of Indian exports by value.
  • ›Target this Nodal Body: Ministry of Commerce and Industry (headed by Piyush Goyal) leads trade negotiations.
  • ›Target this Legal Point: MFN status is a core principle of the WTO agreements.

Mastered this topic? Test your knowledge with a full MCQ quiz.

Practice exam-style questions, track your score, and strengthen your recall.

Q1Static LinkageEasy

Which ministry is primarily responsible for negotiating Free Trade Agreements like the India-EU FTA?

Q2Statement-basedHard

Consider the following statements regarding the draft India-EU trade deal:

1. It grants reciprocal Most-Favoured-Nation (MFN) status for a period of three years.

2. It eliminates tariffs on 96.6% of Indian exports to the EU by trade value.

3. The FTA negotiations were relaunched in the year 2022.

Which of the statements given above is/are correct?

Q3Data-centricMedium

According to the draft India-EU FTA, what percentage of EU exports to India will see tariffs eliminated or reduced by value?

Q4Application/ImpactMedium

A primary strategic objective of the India-EU FTA, as highlighted in the news, is to:

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