India and the European Union have concluded a landmark free trade agreement, described by both sides as “the mother of all deals,” after nearly two decades of on-and-off negotiations shaped by a global geo-economic crisis and the fallout from US trade wars.
Covering a combined market of about two billion people, the agreement links India with the EU’s 27 member states, representing nearly $27 trillion in economic value and roughly a quarter of global GDP.
The deal spans goods, services, and investments, reduces tariffs, and opens wide access to services subsectors, giving India particular advantages in areas such as textiles, pharmaceuticals, machinery, and petroleum products.
European Commission President Ursula von der Leyen and European Council President Antonio Costa joined Indian Prime Minister Narendra Modi in New Delhi for Republic Day, with leaders on both sides hailing the pact as historic and transformative.
Modi said the agreement would boost manufacturing, expand services, and strengthen global investor confidence in India, while European leaders emphasized deeper strategic and economic ties.
Although the agreement still requires legal approval before likely taking effect next year, analysts say it is a major step toward diversifying trade away from US dependence and strengthening long-term India-EU economic relations.
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