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EU-India Seal "Mother of All Deals," Creating 2-Billion-Person Trade Zone

The European Union and India have finalized a historic free trade agreement, described by European Commission President Ursula von der Leyen as the "mother of all deals." The pact will eliminate tariffs on 97% of India's exports, significantly boosting key manufacturing sectors while providing European automakers and machinery producers new access. Concluded at a summit in New Delhi hosted by Prime Minister Narendra Modi, the deal ends an 18-year negotiation journey. The agreement is part of a broader strategic partnership that also includes new frameworks for defence, security, and cooperation on global issues.

Key Points: EU-India Conclude Historic Free Trade Agreement

  • Tariffs removed on 97% of India's exports
  • Boosts Indian textiles, gems, leather
  • Opens Indian market to European goods
  • Culminates an 18-year negotiation process
  • Includes new defence and security pacts
2 min read

EU, India have concluded mother of all deals, created free trade zone of two billion people: Ursula von der Leyen

EU and India finalize a landmark free trade deal, removing tariffs on 97% of Indian exports and creating a massive new economic zone.

"We have concluded the mother of all deals. We have created a free trade zone of two billion people. - Ursula von der Leyen"

New Delhi, Jan 27

European Commission President Ursula von der Leyen announced on Tuesday the successful conclusion of the India-EU free trade agreement, referring to the pact "as the mother of all deals".

"Europe and India are making history today. We have concluded the mother of all deals. We have created a free trade zone of two billion people, with both sides set to benefit," the EC President wrote on X.

"This is only the beginning. We will grow our strategic relationship to be even stronger," she remarked.

By removing tariffs on 97 per cent of India's exports, the deal will provide a huge boost to Indian manufacturing -- especially in textiles, gems, and leather -- while opening India's market to European cars and machinery.

European Council President Antonio Costa also stated that he was looking forward to "a stronger partnership between the European Union and India, based on shared values and heightened ambition".

"Today is about delivering tangible benefits for our citizens. Working together towards our shared prosperity and security and showing leadership on global issues to shape a resilient multipolar global order," he added.

The summit at Hyderabad House marks the end of an 18-year journey, as India and the European Union officially finalised their Free Trade Agreement. Prime Minister Narendra Modi hosted European Commission President Ursula von der Leyen and Council President Antonio Costa, and hailed the pact as a "perfect example of partnership" between two global giants.

PM Modi hosted the 16th European Union-India Summit in New Delhi with President of the European Commission Ursula von der Leyen and visiting President of the European Council, Antonio Costa, to announce the 'mother of all trade deals'.

The deal is expected to come into effect sometime next year. The FTA is expected to bring a qualitative change in deepening the overall bilateral ties in a range of sectors.

The broad focus of the Tuesday meeting was on trade, defence and security, climate change, critical technologies and strengthening the rules-based global order. The two sides are also set to unveil a defence framework pact and a strategic agenda. The new partnership comes at a time when Europe is seeking to reduce its dependence on the US and China and deepen its diplomatic and economic ties to other regions.

- IANS

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Reader Comments

S
Sarah B
While the deal sounds promising, I hope there are strong safeguards for our farmers and small businesses. Opening the market to European cars and machinery is good, but we must ensure our domestic industries can compete and aren't just flooded with imports.
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Priya S
Waah! What a historic moment. This is strategic brilliance. Europe reducing dependence on China means more opportunities for 'Make in India'. Our leather goods and handicrafts will find a huge new market. Feeling very proud today! ✨
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Rohit P
The defence framework pact is the real headline for me. Stronger India-EU ties mean better technology sharing and a more balanced global order. This is about long-term security and strategic autonomy for both.
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Michael C
As someone working in exports, this is the news we've been waiting for. Removing tariffs on 97% of exports is huge. It will directly translate to more jobs and growth in our manufacturing hubs. The 18-year wait seems worth it now.
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Nisha Z
I just hope the benefits reach the common person. Cheaper European products are nice, but will our salaries increase to afford them? The government must focus on skill development so our workforce is ready for the new opportunities.

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