The Tamesis
Prime Minister Narendra Modi said on Tuesday that India has finalized a massive trade deal with the European Union, its largest trading partner.
The two countries have been seeking to strengthen trade ties as the United States imposes punitive tariffs, allowing more trade between their two billion people – whose economies account for about a quarter of global trade.
the deal The talks follow nearly two decades of on-again, off-again negotiations first launched in 2007. This means that India will open its long-protected huge market to “free trade” with 27 European countries.
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“Yesterday, the European Union and India signed a major agreement,” Modi announced. “People around the world call it the mother of all transactions.
“This agreement will bring significant opportunities to India’s 1.4 billion people and millions more in Europe.”
Total trade between India and the EU stood at $136.5 billion in the fiscal year ending March 2025.
The deal was finalized at a summit between Modi and European Commission President Ursula von der Leyen and European Council President Antonio Costa. Von der Leyen said both sides would benefit from it.
formal Signing of the agreement will take place after legal reviewIt is expected to take five to six months, meaning the agreement is likely to be implemented by mid-year.
A range of offers
Under the agreement, India will eliminate tariffs on 90% of EU goods such as wine, beer, spirits, processed food, machinery, medical equipment, chemicals and pharmaceuticals.
The EU will reduce tariffs on Indian exports such as textiles, leather, footwear, gems and jewellery, tea, coffee, spices, sporting goods, toys and seafood.
The agreement comes just days after the EU signed a deal with Mercosur in South America, in addition to agreements with Switzerland, Indonesia and Mexico.
New Delhi also signed trade deals with the UK, New Zealand and Oman last year, prompted by US President Donald Trump Trump decides to impose 50% tariff Goods and products from India.
Negotiations for a U.S.-India trade deal collapsed in mid-2025 but have been restarted in recent months.
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