India and the European Union have finalized a historic free trade agreement after nearly two decades of negotiations, a deal leaders are calling the “mother of all trade deals.” The pact, announced on Tuesday, will significantly reduce or eliminate tariffs on the majority of goods traded between India and the EU’s 27 member states, opening Indian markets to European cars, wine, and machinery and boosting access for Indian textiles, pharmaceuticals and other exports.
The agreement covers nearly 99% of Indian exports and 97% of EU exports, and could nearly double trade between the partners by 2030. Key sectors such as MSMEs are expected to benefit, while tariff cuts on vehicles will be phased in over several years. ()
Officials say the deal underscores efforts to diversify trade amid global economic tensions and rising protectionism. Formal ratification is expected later this year, with implementation likely in 2027.
