Historic India-EU Trade Deal to Form Largest Free-Trade Zone

A historic trade agreement between India and the EU is nearing completion, expected to create the largest free-trade zone as a safeguard against economic coercion. The deal, amid U.S. tariff threats, will bolster trade, manufacturing, and defense ties, notably through an Airbus-Tata joint venture for aircraft production.

A historic trade agreement between India and the European Union is on the brink of finalization, as disclosed by Spain's Foreign Minister, José Manuel Albares, during his visit to New Delhi. This landmark deal is touted as a protective measure against economic coercion, especially as U.S. President Donald Trump continues to impose tariffs on India and threatens Europe.

Following productive meetings with India's Foreign Minister Subrahmanyam Jaishankar, Albares expressed confidence that there would be no obstacles to finalizing the agreement. The planned trade zone would encompass two billion people and make up a quarter of global GDP.

The European Commission President, Ursula von der Leyen, is set to visit India for final negotiations over carbon levies and import duties, specifically in the automotive and steel sectors. The burgeoning trade relationship is also set to enhance defense manufacturing, with a notable collaboration between Airbus and Tata Group for C-295 aircraft production ahead of schedule.

(With inputs from agencies.)