EU, India seal major trade deal

Accord clinched after two decades of talks

- SHRUTI SRIVASTAVA JORGE VALERO ANDREA PALASCIANO

The European Union and India concluded a free trade agreement after nearly two decades of negotiations, as both sides seek to deepen economic ties and offset the impact of Washington’s tariff policies.

“We have concluded the mother of all deals,” European Commission President Ursula von der Leyen said on X yesterday. “We have created a free trade zone of two billion people, with both sides set to benefit.” Ms von der Leyen and European Council President Antonio Costa are in New Delhi to mark the moment.

Indian Prime Minister Narendra Modi, who announced the conclusion earlier in the day, said the agreement would strengthen India's manufacturing and services sectors while boosting investor confidence in Asia's third-largest economy.

The deal is expected to double EU goods exports to India by 2032 by eliminating or reducing tariffs on 96.6% of EU goods exports to India, according to a European Commission press release yesterday. These products range from automobiles and industrial goods to wine, chocolates and pasta. Meanwhile, the EU will eliminate or reduce tariffs on 99.5% of goods imported from India over seven years, India’s Ministry of Commerce and Industry said.