From Autos to Apparel: The India-EU Trade Pact Breakthrough

India and the European Union are set to announce a free trade agreement, easing tariffs on European goods like cars and wine, while boosting the export of Indian electronics and textiles. This strategic move aims to strengthen their economic ties amidst shifting global trade dynamics and U.S. tariff hikes.

India and the European Union are on the brink of finalizing a free trade pact that aims to reduce tariffs significantly. This announcement is anticipated to follow Indian Prime Minister Narendra Modi's meeting with European Council President Antonio Costa and European Commission President Ursula von der Leyen, set to occur during an India-EU summit in New Delhi.

This prospective deal is expected to be a boon for Indian industries, notably electronics and textiles, while offering European automakers a more competitive foothold in India's expanding market. The agreement also encompasses a security and defense pact with potential mobility benefits for skilled workers and students.

If ratified, the trade pact could substantially boost bilateral trade, presently at $136.5 billion, by mitigating existing barriers like high tariffs and non-tariff obstacles, thus fostering stronger economic ties and counterbalancing global trade tensions.