India and the European Union have successfully concluded a Free Trade Agreement (FTA). Negotiations on the deal were initiated in June 2022 and finalized on January 27, 2026. Could the ‘Mother of All Deals’ accelerate India’s efforts towards clearer crypto regulation?
According to the free trade agreement, it grants privileged access for EU exports to the world’s most populous country with 1.45 billion people, potentially doubling EU goods exports to India by 2032, eliminating or reducing customs duties on more than 96% of EU goods exports, eliminating or reducing prohibitive customs duties on key EU agri-food products like wine, oil olive oil, chocolate and pastries. The agreement is expected to save around 4 billion euros each year in customs duties on European products.
However, the FTA does not come into force immediately. All eyes are on the remaining ratification steps. Ratification by the European Parliament could take at least a year after signing.
Since the agreement is designed to cover not only goods but also services and trade rules, it creates a broader policy “container” for how cross-border digital activities should be made compliant. This is the area that crypto exchanges and stablecoin providers are increasingly moving into.
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The Indian crypto industry is already pushing for major tax fixes. The current regime is known for driving crypto activity overseas and weakening consumer protections at home.
India’s current strict tax framework for virtual digital assets includes a flat tax of 30% on gains and 1% TDS on transactions.
But the 2026 budget may constitute an inflection point, especially after the EU-India FTA. The deal certainly highlights the cost of large regulatory gaps in the cryptocurrency segment.
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Meanwhile, all eyes are on US President Donald Trump’s reaction to the deal.
Hosuk Lee-Makiyama, director of the European Center for International Political Economy, said in an interview that the EU-India trade deal is one of the best deals available to both sides, who have historically been protectionist when it comes to strategic sectors of their economies, such as agriculture and automobiles.
“This is a deal they can make that will have a positive impact, while the U.S. and China will remain closed as more markets open up. So in that respect, it’s probably one of the best deals they can make right now,” Lee-Makiyama said.
After Davos 2026, trade war tensions and Trump’s Greenland demands, Bitcoin is currently trading below $88,000.
