After Nearly Two Decades Of Negotiations, India And The European

After nearly two decades of negotiations, India and the European Union (EU) have concluded a historic free trade agreement (FTA) the most ambitious trade deal either side has ever signed. The pact aims to dramatically cut tariffs and deepen economic ties between the world’s most populous nation and the 27‑member EU, creating an expansive trading zone covering about two billion people and roughly one‑quarter of global
Leaders from both sides described the agreement as a transformational milestone: Indian Prime Minister Narendra Modi called it the “biggest FTA in India’s history,” while European Commission President Ursula von der Leyen dubbed it the “mother of all deals.”
The agreement will eliminate or sharply reduce tariffs on the vast majority of traded goods. EU tariffs on Indian products will be cut on nearly all exports, while India will progressively lower duties on a wide range of European imports.
Automobiles: Indian import duties on EU cars once as high as 110 %

will fall to around 10 % under a phased schedule, with quotas on a defined number of vehicles.
Machinery, Chemicals & Pharmaceuticals: These sectors will see substantial tariff cuts or elimination.
Indian exports like textiles, marine products, leather, gems & jewellery, and handicrafts will gain preferential access to the EU market.
The deal is expected to boost bilateral trade significantly. Some estimates project the EU’s goods exports to India could double by 2032, saving billions in duties. Indian sectors such as engineering goods and gems‑jewellery are forecast to see major export growth under the FTA’s preferential access provisions.
Certain goods, particularly agricultural and dairy products, remain protected or partially exempt from tariff cuts on both sides to safeguard domestic industries.

• Deeper cooperation: Beyond trade, the agreement paves the way for cooperation in areas such as mobility of professionals and students, and potentially security and defence collaboration in future frameworks.
• The deal comes amid rising global trade tensions including actions by the United States imposing tariffs and reflects strategic diversification in economic partnerships.
  Described the pact as historic and foundational to India’s growth strategy, highlighting how it will open new markets, boost exports and attract investment.
  Called the FTA the “mother of all deals” and emphasised its role in strengthening trade, supply chains and strategic cooperation between democracies.
  Industry leaders and business groups from both sides have welcomed the deal for its potential to create jobs, enhance competitiveness, and attract foreign direct investment.
  The agreement still needs to undergo legal vetting and ratification by EU member states, the European Parliament, and India’s legislative bodies before it can take effect, likely in late 2026 or early 2027. This free trade pact represents a major shift in global economic relations, marking one of the largest bilateral commercial agreements of the 21st century. It enhances market access, economic integration, and geopolitical cooperation between two powerful trading partners at a time of shifting global trade dynamics.