Indian consumers eager for cheaper bottles of French wine or Italian extra-virgin olive oil may need to curb their expectations.
Even if India and the European Union concluded a long-awaited free trade agreement on Tuesday, its benefits are unlikely to be felt for at least a year. The pact would still need to navigate a dense and time-consuming approval process across the bloc’s member states, a procedural hurdle that routinely delays the implementation of EU trade deals.
For shoppers this means the promise of lower tariffs on European food and wine — often held up as a tangible dividend of the agreement — will remain theoretical for some time.
To begin with, the negotiated draft texts will be published by the EU.
The texts will go through legal revision and translation into all official EU languages. The European Commission will then put forward its proposal to the European Council for the signature and conclusion of the agreement.
Once adopted by the Council, the EU and India can sign the agreements. Following the signature, the agreement requires the consent of the European Parliament, and the Council’s decision on conclusion for it to enter into force.
Once India also ratifies the agreement, it can enter into force. Commerce minister Piyush Goyal has said he hoped the FTA would come to force in 2026. However, political and sectoral sensitivities of EU member states may shape the process, particularly around agriculture, climate and labour standards.
“As witnessed in the EU-Mercosur deal, which was delayed after Parliament referred it to the European Court of Justice amid farm-sector pushback, similar debates could influence the FTA’s timeline even if provisional application moves ahead,” think tank Bower Group Asia said in a note.
Moreover, the steep tariff reduction will be in phases. For instance, the tariff on wine will be halved to 75 per cent on implementation and then reduced to 20 per cent gradually.