India, EU seal 'mother of all deals'

ZERO-DUTY FOR 93% GOODS; CONCESSIONAL ACCESS FOR CARS, WINES

- SIMONTINI BHATTACHARJEE

NEW DELHI: India and the European Union on Tuesday announced the conclusion of negotiations on a long-pending free trade agreement, capping nearly two decades of talks and paving the way for one of the most expansive trade pacts ever negotiated by either side.

Branded by leaders as the “mother of all deals”, the agreement is set to create a combined market of around two billion people spanning India, the world’s fourth-largest economy, and the 27-member European Union, the second-largest economic bloc.

Together, India and the EU account for roughly 25 per cent of global gross domestic product and about one-third of global trade, estimated at nearly $33 trillion. Officials said the agreement will significantly lower trade barriers, deepen economic integration and anchor a broader strategic partnership at a time of heightened global trade uncertainty.

Announcing the outcome after summit-level talks in New Delhi with European Commission President Ursula von der Leyen and European Council President Antonio Costa, Prime Minister Narendra Modi said India had concluded the largest free trade agreement in its history. “This is not merely a trade agreement; it is a new blueprint for shared prosperity,” Modi said, adding that the pact would expand opportunities for farmers, small enterprises, manufacturers and service providers while strengthening supply chains and investment flows.

Under the agreement, over 93 per cent of Indian goods exported to the EU will eventually receive zero-duty access, with the bloc committing to tariff concessions covering 99.5 per cent of trade value. On the first day of implementation, duties will be eliminated on 90 per cent of Indian goods, while levies on another three per cent will be phased out over seven years. Average EU tariffs on Indian products, already relatively low at about 3.8 per cent, will be reduced to around 0.1 per cent.