The political green light for the free trade agreement between the European Union and India, reached in January 2026, marks a turning point in the economic relationship between the two blocs. This is one of the most ambitious agreements signed by India to date and one of the most significant strategic agreements for the EU in Asia. Its scope is remarkable, as it affects around 1.9 billion people and accounts for more than 20% of global GDP.
Beyond trade liberalisation, the treaty places industrial property, intellectual property, data and technology transfer at the heart of economic cooperation. For European companies with interests in India and for Indian companies operating in or seeking to expand in the European Union, the agreement introduces a more predictable and cooperative framework for the management of intangible assets, while at the same time raising the bar in terms of regulatory compliance.
Industrial Property: a cornerstone of the new EU-India framework
The agreement does not treat industrial property as a side issue, but as a structural pillar that shapes trade, investment and innovation. Patents, trademarks, designs, trade secrets and copyright are brought together within a coherent framework that seeks to bridge the regulatory gap between two historically very different legal systems.
This approach reflects a well-established business reality. In innovation-intensive sectors such as pharmaceuticals, technology, manufacturing and agri-food, the effective protection of intangible assets is a key factor in gaining access to complex markets, attracting investment and developing long-term projects. The treaty reinforces that principle without undermining the essential public policies of either party.
Patents, data and medicines: regulatory balance with greater legal certainty
One of the most contentious aspects of the agreement was the treatment of pharmaceutical intellectual property. The approved text clears up one of the main uncertainties in the sector. The treaty does not extend the duration of pharmaceutical patents in India, nor does it impose exclusivity regimes for clinical trial data. The Indian system’s strict patentability criteria, designed to prevent the registration of incremental innovations that do not offer significant therapeutic improvement, remain in full force.
At the same time, the agreement strengthens the effective enforcement of valid patents against infringements and counterfeit products, and expressly preserves the right of states to grant compulsory licences for public health reasons. For innovative European pharmaceutical companies, the main benefit of the agreement lies not in a longer monopoly period, but in a more legally certain environment, more consistent enforcement of rights, and the phasing out of tariffs currently standing at around 10% on certain products. For the Indian generic medicine industry, the agreement ensures regulatory continuity and secures access to the European market.
Trademarks, designs and border controls: tangible protection for businesses
The treaty introduces significant advances in the practical protection of trademarks and industrial designs, with a clear focus on enforcement. Cooperation between customs and judicial authorities in the EU and India is being stepped up to detect and stop counterfeit products before they enter their respective markets. This operational aspect has a direct impact on sectors that are particularly vulnerable to trademark infringement, such as fashion, luxury goods, electronics, the automotive industry, consumer goods and the food sector.
At the same time, the agreement promotes gradual convergence in terms of industrial designs, facilitating their international protection and reducing regulatory fragmentation. For companies with extensive product ranges and rapid innovation cycles, this development helps to simplify rights management and reduce the costs associated with protection across multiple jurisdictions.
Trade secrets and technology transfer: the structural development of the treaty
One of the most significant, albeit less visible, changes is the explicit inclusion of commitments regarding the protection of trade secrets and undisclosed information. For the first time, India undertakes clear obligations in this area, bringing its protection standards in line with those currently in force in the European Union.
This development is particularly significant for joint research and development projects, technology transfers, industrial partnerships and innovation centres. The agreement also provides for mechanisms for dialogue on technology transfer, aimed at facilitating business cooperation without imposing mandatory technology transfers. From a practical perspective, these factors help to mitigate one of the main risks historically perceived by European companies when operating or investing in India in sectors that are knowledge-intensive.
Geographical indications and traditional knowledge
Geographical indications are treated in a specific manner and are negotiated under a parallel agreement, given their economic, cultural and political sensitivity. The aim is to mutually recognise and protect iconic European and Indian products, with a direct impact on the agri-food, beverage and high value-added artisanal sectors.
The treaty also explicitly recognises the importance of traditional knowledge and genetic resources, incorporating safeguards against misappropriation and reinforcing a broader view of intellectual property, linked not only to business innovation but also to sustainability and cultural heritage.
Key deadlines for the implementation of the Treaty
In terms of timing, the agreement was finalised in January 2026. Over the course of this year, the process of formal signing and ratification by the relevant institutions on both sides will begin. The agreement is due to enter into force once this process is complete, with the possibility of provisionally implementing certain trade provisions and transitional periods for some obligations relating to intellectual property. For businesses, we at PONS IP recommend taking a proactive approach to strategic decisions and not waiting until the regulations come fully into force to prepare their IPR portfolios and compliance strategies.
Ultimately, the EU-India agreement will provide a more robust, cooperative and predictable framework for industrial property, data management and technology transfer, without upsetting the balance between innovation and essential public policies. At PONS IP, we believe that, in the relationship between these two economic poles, industrial property ceases to be merely a defensive measure and becomes a structural factor in international competitiveness.
Companies that proactively review their intangible assets and strengthen their compliance strategies by aligning their industrial property rights with their business strategy will be better placed to capitalise on the opportunities presented by this new phase in the economic relationship between the European Union and India.
