India and the European Union have formally concluded a long-awaited Free Trade Agreement (FTA) after nearly 20 years of negotiations, in a pact expected to reshape global commerce and affect a market of around 2 billion people. Leaders from both sides announced the agreement at the 16th India–EU Summit in New Delhi, with European Commission President Ursula von der Leyen calling it the “mother of all deals” and Indian Prime Minister Narendra Modi describing it as a historic milestone in bilateral economic ties.
The FTA, once ratified, will progressively reduce or eliminate tariffs on a wide range of goods and services, covering a significant share of global trade and about 25 % of world GDP. Under the deal, India is expected to cut import levies on European cars, wines, and other products, while the EU will remove duties on most Indian exports, including textiles, gems, and pharmaceuticals, enhancing market access on both sides.
Officials say the agreement will boost investment, strengthen global supply chains, and deepen economic integration amid a period of shifting geopolitical alliances and trade tensions worldwide. Final ratification by EU member states, the European Parliament, and India’s cabinet is anticipated before the pact enters into force next year, marking a new chapter in economic cooperation between two major global actors.
News as reported
