India And EU Finalize Historic Free Trade Agreement After Two Decades Of Talks

by Stefan J. Bos, Worthy News Chief International Correspondent

NEW DELHI (Worthy News) – India and the European Union have finalized a historic free trade agreement after nearly two decades of negotiations, leaders said Tuesday, in a pact set to reshape global commerce amid rising economic uncertainty and strained ties with the United States.

Indian Prime Minister Narendra Modi hailed the accord as transformative, saying it would open significant opportunities for India’s 1.4 billion people and millions across Europe. He described it as the “mother of all deals.”

European Commission President Ursula von der Leyen welcomed the agreement, calling it a reliable and strategic partnership that strengthens economic ties and delivers tangible benefits for businesses and consumers on both sides.

The deal paves the way for India to open its vast, closely guarded market—the world’s most populous—to freer trade with the 27-nation European Union, India’s largest trading partner. Trade between India and the EU totaled about $136.5 billion in the fiscal year ending March 2025.

KEY PROVISIONS AND MARKET OPENING

Officials said the agreement includes the phased elimination of tariffs on a wide range of Indian and EU goods, including textiles, chemicals, machinery, and food products.

It also significantly cuts automobile duties, with a staged reduction from currently high tariffs to as low as 10 percent for certain imports, aimed at encouraging broader trade and investment.

In addition, the pact is expected to provide broader access for Indian exports valued at about roughly $77 billion, while opening expanded opportunities for European companies across multiple sectors, according to officials.

LONG ROAD TO AGREEMENT AND NEXT STEPS

Negotiations were first launched more than 15 years ago and stalled repeatedly over disputes involving tariffs, market access, and regulatory standards, before gaining momentum amid shifting global trade dynamics.

The agreement now moves to legal vetting and ratification, a process expected to take several months. Officials said implementation could follow within about a year.

Analysts say the India-EU pact ranks among the most consequential trade agreements in recent years, strengthening economic links between two of the world’s largest markets and underscoring a broader push by governments to diversify partnerships as global alliances evolve.

Latest Worthy News