EU and India seal landmark trade deal after 20 years of negotiations
The European Union and India have finalized a sweeping free trade agreement, concluding nearly two decades of negotiations, officials announced on Tuesday.
Dubbed the “mother of all deals,” the pact creates a free trade zone covering around two billion people and significantly deepens economic, strategic and security cooperation between the two sides. Under the agreement, tariffs on nearly 97% of EU exports to India will be reduced or eliminated, saving European companies an estimated €4 billion annually.
India will gradually cut tariffs on EU cars from 110% to 10% within a set quota, while duties on wine, processed foods, machinery, chemicals and pharmaceuticals will also be sharply reduced or phased out. In return, European firms will gain expanded access to India’s financial services and maritime transport sectors.
The deal also establishes the first EU-India security and defense partnership, covering areas such as maritime security, cybersecurity and defense technology. Leaders on both sides hailed the agreement as historic, saying it will strengthen trade, investment and supply chains, with the pact expected to be signed later this year and enter into force in early 2027.
