India and EU Sign ‘Mother of All Deals’ in Historic Free Trade Agreement
India
India and the European Union finalized a free trade agreement after nearly two decades of negotiations, hailed as the “mother of all deals” by EU officials and Indian Prime Minister Narendra Modi.
The agreement establishes a free trade zone encompassing two billion people, representing 25% of global GDP and one-third of global trade.
India will reduce or eliminate tariffs on 96–97% of EU exports, including automobiles, wines and spirits, machinery, chemicals, electrical equipment, iron and steel, financial services, maritime transport, with estimated savings of €4–4.75 billion annually for European companies.
The EU will reciprocate with cuts on 99% of Indian exports, gradually eliminating duties on textiles, apparel, leather, handicrafts, gems and jewellery, marine products, engineering goods, chemicals, rubber, base metals, and service sectors.
Trade between India and the EU reached €120 billion in goods and €60 billion in services for 2024-2025. EU exports to India are projected to double by 2032 and increase bilateral trade to around $200 billion by 2030.
The agreement is a response to U.S. tariffs on Indian goods (up to 50%) and broader trade pressures from Washington. The EU aims for strategic autonomy, having previously signed trade agreements with Japan, Indonesia, Mexico, Mercosur, and others.
