NEW DELHI — After nearly two decades of negotiations, India and the European Union announced Tuesday that they have reached a landmark free trade agreement, described by the EU chief as the “mother of all deals,” potentially affecting up to 2 billion people.
The accord comes as Washington imposes steep tariffs on both India and the EU, prompting major economies to seek alternative trade partnerships. Indian Prime Minister Narendra Modi, speaking virtually at an energy conference, said the agreement “represents 25% of the global GDP and one-third of global trade” and will bring “major opportunities for the people of India and Europe.”
Under the deal, nearly all goods traded between the 27 EU member states and India will see reduced or eliminated tariffs. Key sectors for India include textiles, apparel, engineering goods, leather, handicrafts, footwear, and marine products. European gains are expected in wine, automobiles, chemicals, and pharmaceuticals. Tariffs on European cars imported to India will gradually fall from 110% to as low as 10%, while duties on car parts will be phased out within 5–10 years. Tariffs on premium European wines will drop from 150% to 20%.
In addition to trade, the deal outlines frameworks for defense and security cooperation and agreements to facilitate mobility for skilled workers and students, highlighting the partnership’s scope beyond commerce.
Speaking alongside European Commission President Ursula von der Leyen and European Council President António Costa at a joint press conference in New Delhi, Modi said the agreement “will strengthen stability in the international system” amid global turmoil. Von der Leyen described the pact as a “true win-win” between two giants choosing cooperation as the best answer to global challenges.
The deal is expected to further integrate supply chains, boost joint manufacturing, cut up to €4 billion ($4.7 billion) in annual tariffs, and create jobs for millions in India and Europe. A formal signing could occur later this year following legal review and EU Parliament ratification. Indian Trade Minister Piyush Goyal anticipates the agreement will come into force by year-end.
India is set to reduce or eliminate tariffs for 96.6% of EU exports, with Brussels reciprocating in phases to cover nearly 99% of Indian shipments by trade value. Certain sensitive products are excluded: India will maintain protections for dairy and cereals, while the EU will not offer concessional tariffs on Indian sugar, meat, poultry, and beef products.
Trade between India and the EU totaled $136.5 billion in 2024–2025, with both sides aiming to reach approximately $200 billion by 2030. “Ultimately, the agreement is about creating a stable commercial corridor between two major markets at a time the global trading system is fragmenting,” said Indian trade analyst Ajay Srivastava.
The deal also represents the EU’s effort to diversify trade partners amid strained relations with the United States, which has imposed punitive tariffs on several EU and Indian goods. Over the past year, the EU has secured similar strategic trade agreements with Japan, Indonesia, Mexico, and South American nations under its “strategic autonomy” initiative.
This historic agreement marks a major step in India-EU economic and strategic relations, signaling a long-term partnership aimed at stability, growth, and cooperation across multiple sectors.
Si Venus L Peñaflor ay naging editor-in-chief ng Newsworld, isang lokal na pahayagan ng Laguna. Publisher din siya ng Daystar Gazette at Tutubi News Magazine. Siya ay isa ring pintor at doll face designer ng Ninay Dolls, ang unang Manikang Pilipino. Kasali siya sa DesignCrowd sa rank na #305 sa 640,000 graphic designers sa buong daigdig. Kasama din siya sa unang Local TV Broadcast sa Laguna na Beyond Manila. Aktibong kasapi siya ng San Pablo Jaycees Senate bilang isang JCI Senator.
- Venus L Peñaflor
- Venus L Peñaflor
- Venus L Peñaflor
- Venus L Peñaflor
