India-EU FTA 2026: Latest Round Progress and Commercial Implications

The India-EU FTA negotiating round held in Brussels in early 2026 concluded with both sides describing progress as "constructive." Tariff schedule negotiations are approximately 85% complete. Pharmaceuticals are confirmed for Day-1 duty elimination. Engineering goods and chemicals are similarly confirmed for early elimination schedules.

What remains contentious: Two chapters are blocking conclusion: IP (EU seeks data exclusivity provisions for originator pharmaceutical data; India resists) and Government Procurement (EU wants access to Indian central government procurement above EUR 5M threshold).

AJG recommendation: Proceed with EU certification investments now. The runway from FTA conclusion to first commercial benefit is 18-24 months regardless of when negotiations conclude. Companies that start compliance investment today will be able to ship on Day 1 of FTA entry into force; companies that wait for conclusion will lag by 2 years.