India and the European Union just wrapped up a massive free trade agreement after almost 20 years of talks. Leaders called it the “mother of all deals.” This pact opens doors for billions in trade and creates a huge market for two billion people.
The announcement came on Tuesday during a summit in India’s capital. Prime Minister Narendra Modi met with EU leaders Ursula von der Leyen and Antonio Costa. They stood together to share the good news after final talks ended on Monday.
This deal covers a lot. It cuts or removes tariffs on over 96% of EU goods going to India. For India, almost all its exports to the EU get better access, with many tariffs dropping to zero right away. Think cars, wine, and other European products getting cheaper in India. On the other side, Indian textiles, medicines, leather goods, and more can flow easier into Europe.
Trade between the two sides already hit big numbers. In 2024, goods trade reached about 120 billion euros, up nearly 90% in the last ten years. Services added another 60 billion euros. With this pact, experts expect EU exports to India to double in the coming years. India hopes for more jobs, better tech, and stronger factories from European investment.
Why now? Both sides face tough times with the US and China. New tariffs from the US push them to find new partners. This deal helps them stand stronger together in a changing world. It also includes help for workers, students, researchers, and skilled people to move between the two places more easily. Plus, there’s a new security and defense partnership signed today.
Von der Leyen called it a historic step. She said the EU gets the best market access ever in India’s protected economy. Modi called it New Delhi’s biggest trade deal ever. Together, India and the EU make up about 25% of world GDP and a big chunk of global trade.
Talks started back in 2007 but stopped for years before restarting in 2022. The last round was tough, with late-night discussions on things like steel taxes and other details. But they got it done.
For everyday people, this could mean lower prices on European cars, wine, cheese, and other items in India. Indian clothes, drugs, and handicrafts might sell better in Europe. Businesses on both sides see big chances to grow and create jobs.
India, the world’s most populous country, is growing fast. The IMF says it could soon be the fourth biggest economy. This deal fits right into that rise, helping India build more at home and cut reliance on old suppliers.
EU leaders were in New Delhi for India’s Republic Day parade on Monday as special guests. That set the stage for today’s big moment. Von der Leyen posted online that India and Europe chose partnership, talk, and openness in a divided world.
This is more than just trade numbers. It’s about building stronger ties when global markets feel shaky. The deal still needs final steps like signing later this year and approvals from the EU Parliament and India. But the hard part is over.
Many see this as a smart move for both. It opens fresh paths for growth and shows that even after long waits, big agreements can happen. Exciting times ahead for trade between these two powerhouses.