After nearly two decades of on-again, off-again talks, India and the European Union concluded negotiations on a comprehensive Free Trade Agreement on 26 January 2026. Commerce Secretary Rajesh Agrawal called it the “mother of all trade deals.” Legal scrubbing will continue through the spring, with formal signing expected before India’s fiscal year-end (31 March 2026).
While tariff cuts on textiles and automotive parts grabbed headlines, mobility practitioners were quick to note that the services annex includes a dedicated Mode 4 chapter covering short-term business visitors, intra-corporate transferees, independent professionals and contractual service suppliers. Draft schedules seen by industry bodies indicate reciprocal 90-day visa-free stays for ICT managers and a fast-track consular lane for Indian IT and engineering professionals.
![India and European Union Clinch Long-Awaited Free Trade Deal, Paving Way for Mobility Chapter]()
The agreement also establishes a mutual-recognition dialogue for professional qualifications in accounting, architecture and medical services—areas where previous Indian trade pacts have offered limited relief. If implemented as drafted, the FTA could slice weeks off the current Schengen visa process for project teams and lower work-permit salary thresholds in select EU states.
Indian exporters with on-site installation obligations should watch for implementing guidelines from the Directorate General of Foreign Trade (DGFT) and individual EU member states. Companies may need to adapt assignment policies quickly once the deal enters into force.
While tariff cuts on textiles and automotive parts grabbed headlines, mobility practitioners were quick to note that the services annex includes a dedicated Mode 4 chapter covering short-term business visitors, intra-corporate transferees, independent professionals and contractual service suppliers. Draft schedules seen by industry bodies indicate reciprocal 90-day visa-free stays for ICT managers and a fast-track consular lane for Indian IT and engineering professionals.
The agreement also establishes a mutual-recognition dialogue for professional qualifications in accounting, architecture and medical services—areas where previous Indian trade pacts have offered limited relief. If implemented as drafted, the FTA could slice weeks off the current Schengen visa process for project teams and lower work-permit salary thresholds in select EU states.
Indian exporters with on-site installation obligations should watch for implementing guidelines from the Directorate General of Foreign Trade (DGFT) and individual EU member states. Companies may need to adapt assignment policies quickly once the deal enters into force.
Source: The Times of India
