India and EU Seal Historic Free Trade Deal After Two Decades of Talks

NEW DELHI: (Web Desk) – India and the European Union have finalized a landmark free trade agreement, two decades after negotiations began, Indian officials confirmed on Monday. The deal is set to be officially announced at a summit in New Delhi on Tuesday, where European Commission President Ursula von der Leyen and European Council President Antonio Costa will meet Prime Minister Narendra Modi.

Bilateral trade in goods between India and the EU reached €120 billion ($139 billion) in 2024, up nearly 90% over the past decade, with an additional €60 billion ($69 billion) in services. Indian Commerce Minister Piyush Goyal called the pact “the mother of all deals.”

Under the agreement, India will ease market access for European products such as cars and wine, while Europe will gain better access for textiles, pharmaceuticals, and other goods. Von der Leyen described it as “the highest level of access ever granted to a trade partner in the traditionally protected Indian market,” expecting exports to India to double.

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The deal also includes agreements on movement for seasonal workers, students, researchers, and highly skilled professionals, along with a security and defence pact. The move highlights a strategic partnership between India and Europe amid global trade tensions with the U.S. and China.

Both sides emphasized that the agreement signals openness and cooperation in a fractured world, while India aims to diversify its imports and reduce reliance on Russia for military hardware, and Europe seeks alternatives to dependence on the United States.