India, European Union Sign Key Agreement to Boost Cross-Border Digital Trade

India and the European Union have taken a decisive step towards paperless global trade. On 27 January 2026, the Ministry of Electronics and Information Technology (MeitY) and the European Commission’s DG CONNECT signed an important administrative arrangement to enable secure cross-border use of electronic signatures and seals. This move will allow Indian exporters and EU businesses to digitally sign contracts and documents with legal validity, reducing delays, costs and compliance hurdles, while strengthening India–EU digital trust and cooperation.

Who Signed the Agreement?

• The agreement was signed between Ministry of Electronics and Information Technology (MeitY) and the Directorate-General for Communication Networks, Content and Technology (DG CONNECT) of the European Commission.
• It was formally signed by the Secretary, MeitY, and the Director-General of DG CONNECT, reflecting high-level institutional commitment from both sides.

What Is the Administrative Arrangement About?

• The arrangement establishes a framework for cooperation on advanced electronic signatures, electronic seals, and Public Key Infrastructure (PKI) systems.
• Its core objective is to ensure interoperability between India’s and the EU’s digital trust systems, while remaining fully consistent with their respective legal frameworks.
• In India, implementation will be carried out through the Controller of Certifying Authorities (CCA) under the Information Technology Act, 2000.

How Will This Help Cross-Border Trade?

• Under this framework, India and the EU will link their trusted lists of recognized service providers.
• This will enable easy validation of electronic signatures and seals issued in either jurisdiction.
• As a result, Indian exporters and EU buyers can digitally sign contracts, invoices and compliance documents without physical paperwork or courier delays.
• This significantly cuts transaction time, reduces costs, and improves legal certainty in cross-border trade.

Why Is This Important for MSMEs?

• The agreement is particularly beneficial for MSMEs, which often struggle with high compliance costs and procedural delays in international trade.
• By enabling trusted digital signatures, small exporters can complete documentation faster and with greater confidence.
• This supports India’s broader goal of digitally empowering MSMEs and improving their access to global markets, especially in Europe.

About DG CONNECT

Organisation Overview

• Name: Directorate-General for Communications Networks, Content and Technology (DG CONNECT)
• Institution: European Commission
• Focus: Europe’s digital present and future

Core Mission

• Shape and strengthen Europe’s digital ecosystem
• Support democracy, security, competitiveness, and technological sovereignty
• Promote European independence in strategic digital technologies

Digital Policy & Innovation Responsibilities

• Support and regulate digital and frontier technologies
• Promote Europe as a global leader in Artificial Intelligence (AI)
• Unlock the economic and societal potential of data
• Boost digital infrastructure and connectivity
• Promote digital skills and talent development

Question

Q. Which Indian law governs the implementation of the India-EU electronic signature arrangement?

A. Digital India Act
B. Information Technology Act, 2000
C. Data Protection Act
D. Companies Act