India and the European Union (EU) are expected to sign their long-awaited Free Trade Agreement (FTA) by December 31, with the legal review of the agreement set to conclude within the next 10-12 days, Commerce Minister Piyush Goyal said on Thursday.
The minister also indicated that negotiations on the proposed interim trade agreement with the US are nearing completion but stressed that India would sign the deal only if it secures a clear competitive advantage.
Speaking at an event in New Delhi, Goyal said the legal scrubbing of the India-EU FTA text is almost complete.
After the legal review, the agreement will require approval from the European Commission and the European Parliament before it can be formally signed.
India and the EU concluded negotiations on the FTA earlier this year after years of discussions. The agreement includes tariff concessions on more than 90 percent of tariff lines, making it one of India's most significant trade agreements.
According to Goyal, if the approval process proceeds as planned, it will become the fastest trade agreement ever approved by the EU within a single calendar year.
Goyal said negotiations with the US on an interim trade agreement have largely been completed, but India continues to seek better market access before finalising the pact.
He said the remaining issue is ensuring that India receives a competitive advantage over other trading partners.
The negotiations have gone through three rounds since both countries announced plans for an interim agreement earlier this year.
Trade discussions have become more complicated after changes in US tariff policy. While Washington had earlier proposed reducing reciprocal tariffs on Indian goods, subsequent legal developments led to the suspension of that framework. The US currently imposes a baseline 10 percent tariff on imports from trading partners, which is scheduled to expire on July 24.
The minister expressed confidence in India's export performance despite continuing geopolitical uncertainties.
He said exports are expected to grow by around 15 percent during the April-June quarter compared with the same period last year.
India's merchandise exports totalled $88.91 billion during April and May. The official trade figures for June are scheduled to be released on July 15.
Goyal also acknowledged concerns over the possible impact of El Niño on agriculture and food security.
He said June weather conditions had raised concerns, although there is hope that rainfall will improve during July.
The government has maintained adequate foodgrain stocks and is monitoring water availability to safeguard food security, he added.
The India Meteorological Department has forecast below-normal monsoon rainfall for 2026, estimating precipitation at 90 percent of the long-period average due to El Niño conditions.