On January 27, 2026, the EU and India signed a new trade deal that will create a combined $24 trillion market. The deal still requires final ratification by the European Union and India's respective parliaments, but if passed, trade is expected to double between the two sides by 2032. Under the deal, India will gain preferential access to the European market for labor-intensive products such as textiles, footwear, toys, and jewelry. European companies will benefit from increased sales of automobiles and agricultural products to India.
In the years prior to this “mother of all deals,” so dubbed by European Commission President Ursula von der Leyen, the EU rolled out a new compliance regime covering forced labor and corporate sustainability due diligence. European companies will need investigations support to enhance supply chain transparency and monitor for issues such as child labor, which continue to be problematic in India. A 2024 report by UNICEF cited historic studies on child labor in India, including a report that 2% of children aged 5–17 were engaged in economic activity in India.
In 2007, India's Parliament debated, but ultimately failed to pass, the Private Detective Agencies (Regulation) Bill, which would have imposed mandatory licensing and registration requirements on investigation firms, and created a regulatory framework for the industry. The Bill was introduced after passage of India's 2005 Private Securities Agencies (Regulation) Act, which regulates security guards and contractors. Detractors complained that the Private Detective Agencies Bill would have added regulatory burden, such as the requirement to maintain client lists available for government inspection, which itself raised concerns about corporate privacy.
Companies today may still legally engage investigators in India. However, failure to pass the Bill has left the sector unregulated. Companies shopping for bargain investigative services may end up working with investigators who utilize unethical or even illegal methodologies. Business surveys also consistently note the challenges of corruption in India. European companies must be alive to the possibility that the people they trust to monitor for human rights violations may turn a blind eye for a fee.
The trade deal is a strong signal that India is progressing toward Prime Minister Modi's goal of doubling the country's economy by 2030. It may incentivize India's Parliament to push through laws that will benefit both domestic and foreign professional services firms. In May 2025, the Bar Council of India amended regulations to allow foreign law firms more scope to participate in international commercial arbitration in the country. Hopefully, more liberalization will follow. The EU-India trade deal may be the catalyst that spurs additional reforms, including better regulation of the investigations sector in India.
'Europe and India are making history today,' von der Leyen said after landing in Delhi, where she met the Indian prime minister, Narendra Modi, on Tuesday. 'We have concluded the mother of all deals. We have created a free trade zone of 2 billion people, with both sides set to benefit.'
https://www.theguardian.com/business/2026/jan/27/eu-and-india-sign-free-trade-agreement
