India and EU Finalize Landmark Trade Agreement After 18 Years of Negotiations

India and the European Union (EU) have finalized a free trade agreement (FTA) aiming to strengthen economic ties and counteract global trade disruptions. Announced during the India-EU Summit, the deal seeks to eliminate import duties on a significant portion of traded goods and enhance market access.

In a historic move toward strengthening bilateral economic ties, India and the European Union (EU) have finalized a landmark free trade agreement (FTA). Set to be announced on January 27 at the India-EU Summit, this pact concludes 18 years of negotiations, reflecting significant progress in international trade relations.

This agreement—dubbed by India's Commerce and Industry Minister Piyush Goyal as the "mother of all deals"—aims to enhance trade by eliminating or reducing import duties on over 90% of goods exchanged between the two regions. Sensitive sectors like agriculture are excluded, while zero-duty access is expected for numerous labor-intensive Indian industries, and the EU seeks greater access for its automotive and high-tech exports.

The EU, a major global trading player with GDP around USD 20 trillion, significantly invested in India's markets. The completion of this FTA promises to diversify export routes and diminish reliance on China, fostering economic growth amid broader trade disruptions caused by tariffs from other global players like the US.

(With inputs from agencies.)