The European Union and India have finalised a long-awaited free trade agreement, marking a major breakthrough after nearly 20 years of intermittent negotiations. European Commission president Ursula von der Leyen described the pact as the "mother of all deals", calling it a historic moment for economic cooperation between two of the world's largest markets.
The agreement is set to significantly open India's traditionally protected economy to EU businesses, particularly in manufacturing and services. In return, Indian exporters are expected to gain easier access to European markets for products such as textiles, gems and pharmaceuticals. EU officials say the deal will eliminate or reduce tariffs on more than 96% of goods traded by value, potentially doubling EU exports to India by 2032.
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Under the deal, India will gradually cut import tariffs on European cars to 10% over five years, down from rates that currently reach as high as 110%. The move is expected to benefit major European carmakers, while also lowering costs for Indian consumers. The EU estimates the agreement will save European companies around €4bn a year in duties once fully implemented.
Indian prime minister Narendra Modi welcomed the agreement, describing it as the largest free trade deal India has ever signed and a milestone covering roughly a third of global trade. Both sides highlighted the scale of the partnership, linking a combined market of around two billion people at a time of growing uncertainty in global trade...