New Delhi, Jan. 28 -- India's Free Trade Agreement with the European Union, finalised on January 26, 2026, marks one of the most consequential trade alliances in recent history. Covering economies that together represent nearly 25 % of global GDP and 33 % of global trade, the agreement is expected to accelerate India's integration into global supply chains and strengthen its long-term export competitiveness.

For Indian stock markets, the deal is undeniably positive. It enhances India's positioning in a rapidly fragmenting global trade environment and opens up tariff-friendly access to the world's largest trading bloc. However, market experts caution that the India-EU pact must not be viewed as a substitute for a potential India-US trade ...