The European Union and India have finalised a comprehensive free trade agreement, described by European Commission President Ursula von der Leyen as the 'mother of all deals'. The pact, which will eliminate tariffs over seven years, was hailed by Indian Prime Minister Narendra Modi as the 'largest free trade agreement' in India's history, covering about a third of global trade.
Trade talks, which began in 2007 but stalled over disputes on cars, agriculture, and dairy, were revived in 2022. Negotiations accelerated significantly over the past six months, driven by heavy US tariffs under Donald Trump's administration and shared concerns over China's dominance in global manufacturing and its restrictions on key exports.
The deal is expected to open India's vast market to the 27 EU member states, focusing on manufacturing and services. Formal signing is anticipated later this year, with implementation possibly by early next year. India, with a population of 1.4 billion, is among the world's fastest-growing economies and is set to become the fourth-largest economy this year, according to the International Monetary Fund.
