India-EU FTA: Forging a Path to Prosperity

India and the European Union have concluded negotiations on a landmark free trade agreement. Dubbed the 'mother of all deals,' it offers 93% of Indian shipments duty-free access to the EU. The agreement, anticipated to be enacted by 2027, affirms a new economic alliance, potentially transforming trade dynamics.

India and the European Union on Tuesday successfully wrapped up negotiations for a comprehensive free trade agreement, hailed as the 'mother of all deals.' This landmark agreement will offer 93% of Indian shipments duty-free access to the 27-member EU bloc, significantly impacting the trade landscape.

The deal, which took over two decades to negotiate, sets the stage for a thriving market of nearly 2 billion people across India, the world's fourth-largest economy, and the EU, representing the second-largest economic bloc. Collectively, India and the EU hold 25% of global GDP and manage one-third of international trade, approximately USD 11 trillion out of USD 33 trillion worldwide.

The pact, which Prime Minister Narendra Modi described as a new blueprint for shared prosperity, is expected to stimulate unprecedented market access for over 99% of India's exports by value, according to Commerce and Industry Minister Piyush Goyal. Once implemented, this agreement will position the EU as India's 22nd FTA partner, reinforcing India's global trade engagements.