India-EU Free Trade Agreement Advances Digital Trade and CBDC Cooperation

The India-European Union Free Trade Agreement (FTA), signed in January 2026 after nearly two decades of negotiations, aims to reduce tariffs on most traded goods and enhance digital trade cooperation. The agreement includes provisions to revisit cross-border data flow rules in five years, promotes paperless trade, and legally recognizes electronic contracts. It also features a rare reference to collaboration on Central Bank Digital Currencies (CBDCs) and fintech innovations. Both sides emphasize privacy protections and WTO-aligned trade safeguards, excluding certain agricultural products from tariff reductions.