Lisbon, 31 January, 2026 – This week marked a major milestone in global trade with the European Union and India finalising the largest free trade agreement ever concluded. The agreement represents a significant step toward deeper economic integration, with tariffs expected to be reduced or eliminated on 96.6% of EU exports to India, making trade faster, simpler, and more cost-effective.

European and Portuguese business leaders have highlighted Portugal’s strong positioning to benefit from this agreement. As an EU member state and a natural gateway connecting Europe, Africa, and Atlantic markets, Portugal combines strategic geography with longstanding economic and diplomatic ties to India. These historic connections, rooted in centuries of trade and reinforced through modern cooperation, provide a solid foundation for more structured and expanded economic collaboration.

Currently, more than 700 Portuguese companies export to India, a number expected to grow as new market conditions take effect. The agreement states reductions in tariffs in following sectors – automobile, machinery and electrical equipment, aircraft and spacecraft, processed food, beer, wines, spirits, olive oils, chemicals, pharmaceuticals, plastics, iron and steel, optical, medical and surgical equipment, meat preparations, to name a few, creating growth potential for Portuguese exports.

At the Portugal–India Business Hub (PIBhub), a strategic platform connecting business leaders, entrepreneurs, and stakeholders across multiple sectors, this agreement is viewed as a key opportunity to accelerate trade, investment, and knowledge exchange between Portugal and India. During the transition period before the agreement enters into force, PIBhub aims to support its members in preparing strategically and positioning themselves to fully benefit from this new phase of EU–India economic relations.