Two billion people, one market

India to levy zero tariffs on nearly 96% of EU goods; EU to drop duties on 98% of Indian goods. India; both sides keep sensitive areas out of deal

- Dhirendra Kumar & Gireesh Chandra Prasad

India and the European Union (EU) on Tuesday announced the successful conclusion of negotiations for a historic free trade pact, opening up markets to each other in an uncertain global trade landscape.

From India's perspective, the agreement delivers unprecedented market access, with over 99% of Indian exports by trade value set to receive preferential or duty-free entry into the EU market.

Both countries, however, kept sensitive agricultural products out of the Free Trade Agreement (FTA), billed as the 'mother of all trade deals' for its scale, scope and strategic weight. India for example, has shielded dairy, cereals, poultry, soymeal, certain fruits and vegetables, while the EU has protected beef, sugar, rice, chicken meat, milk powder, honey, bananas and soft wheat, on which current tariffs will be maintained. India will, however, get better EU market access for its tea, coffee, spices and processed food, while opening up domestic market for EU spirits, wine and olive oil.