New Delhi, India – India and European Union (EU) have officially concluded negotiations on a landmark Free Trade Agreement (FTA), described by officials as the ‘mother of all deals’. The agreement, which has been in development for nearly twenty years, marks a significant shift in global economic dynamics and establishes a new strategic blueprint for bilateral relations between India and the 27-member European Union.

Under the terms of the pact, approximately 99.5% of Indian exports will enter the European market with zero duties. Conversely, India will reduce or eliminate tariffs on 97% of EU goods. A notable breakthrough includes the reduction of Indian tariffs on European motor vehicles from 110% to just 10%, alongside significant concessions on European wines. For India, the deal provides a vital boost to labour-intensive sectors such as textiles and footwear, placing Indian manufacturers on a level playing field with regional competitors like Vietnam.

Beyond trade, the agreement encompasses 13 key outcomes, including a comprehensive security and defence partnership and a framework for the mobility of students and professionals. Addressing environmental concerns, India secured concessions regarding the EU’s Carbon Border Adjustment Mechanism (CBAM), ensuring Indian exporters receive treatment similar to that granted to the United States.

The timing of the deal is widely viewed as a strategic response to the shifting global trade landscape. Analysts suggest that the protectionist policies and tariff threats originating from Washington have acted as a catalyst, prompting both New Delhi and Brussels to diversify their partnerships and strengthen economic sovereignty.