New Delhi, Jan 26 : Negotiations for the long-awaited India-European Union Free Trade Agreement (FTA) have been successfully concluded, and the deal will be officially announced on Tuesday, Commerce Secretary Rajesh Agrawal said on Monday.

Describing the agreement as balanced and forward-looking, Agrawal noted that it would strengthen economic integration between India and the EU and significantly boost trade and investment flows.

The FTA is expected to come into force sometime next year after the legal review of the text, a process that could take around five to six months, following which the formal signing will take place.

Often referred to as the 'Mother of All Deals,' the India-EU FTA is being seen as a major step in expanding Indiaâ??s global trade footprint.

He believe the agreement could help soften the impact of high US tariffs by opening up wider opportunities in the European market, especially for Indian exports such as textiles and jewellery.

One of the most significant outcomes of the pact is the opening up of Indiaâ??s automobile sector to European car manufacturers.

Import duties on European vehicles are expected to be sharply reduced from the current 110 per cent to around 40 per cent -- making cars from companies like Volkswagen, Mercedes-Benz and BMW more affordable in the Indian market.

The auto sector has traditionally been one of the most protected areas of the Indian economy and is largely dominated by Japanâ??s Suzuki Motor and Indian brands Mahindra and Tata, which together control nearly two-thirds of the market.

At present, European companies hold only about 4 per cent of Indiaâ??s annual car market of 4.4 million units.

The EU already plays a key role in Indiaâ??s trade landscape. It accounts for around 17 per cent of Indiaâ??s total exports, while exports to India make up about 9 per cent of the EUâ??s overseas shipments.

In the financial year 2024â??25, Indiaâ??s bilateral trade in goods with the EU stood at $136.53 billion, with exports worth $75.85 billion and imports at $60.68 billion.

This made the EU Indiaâ??s largest trading partner in goods. Trade in services between the two sides reached $83.10 billion in 2024.

/IANS