On Tuesday 27 January 2026, the Fédération des Industries Luxembourgeoises (FEDIL) welcomed the announcement by the European Commission of the conclusion of negotiations on a free trade agreement between the European Union and India.
In a press release, FEDIL said that as the world’s fourth-largest economy and a major trading partner of the European Union, India represented a market of growing strategic importance for European companies, particularly those from Luxembourg. This agreement marks a significant milestone in strengthening economic relations between the EU and India and opens up substantial opportunities for the development of bilateral trade.
The association noted that the agreement provides for an ambitious opening of the Indian market, notably through a broad reduction of customs duties on European goods and enhanced access to the services market. It will offer new opportunities for European companies, including SMEs, while improving the predictability and legal certainty of trade.
It added: “In an international context marked by geoeconomic tensions and increasing uncertainty in global trade, this agreement constitutes one of the pillars of the European strategy for geopolitical diversification. It helps to strengthen the resilience of supply chains, expand commercial outlets and reduce excessive dependencies. By aligning with a common agenda through to 2030, which includes security and defence, this agreement contributes to a stable and predictable environment, benefiting the Luxembourg economy.”
FEDIL said it hoped that the approval processes at the Council and European Parliament levels will proceed smoothly, enabling the European Union to demonstrate its capacity for action and to position itself as a reliable partner, fully aware of competitiveness challenges and the strategic role of foreign trade.
