India-EU Mega Trade Deal: A New Era of Global Commerce

India and the European Union have sealed a major trade agreement to potentially double EU exports to India by 2032. The deal will reduce tariffs on most goods traded, resulting in significant savings for European companies. It also marks a strategic shift to decrease trade dependency on the U.S.

India and the European Union, striving for strategic autonomy amidst fluctuating global alliances, have finalized a landmark trade deal set to revolutionize bilateral commerce. Announced on Tuesday, the agreement is expected to double EU exports to India by 2032, significantly slashing tariffs on 96.6% of traded goods by value, according to EU officials.

In a landmark move, the EU will trim duties on 99.5% of goods over the next seven years. A phased approach will see tariffs on Indian marine products, leather, textiles, and metals reach zero. Indian Prime Minister Narendra Modi heralded the deal as 'the mother of all deals,' anticipating extensive opportunities for billions in both regions.

India will notably reduce its tariffs on European cars and spirits, providing a competitive edge to brands like Volkswagen and BMW in its vast market. This historic pact, poised for a formal signing next year pending legal vetting, follows a series of global trade agreements designed to recalibrate trade dynamics amid U.S. policy shifts.

(With inputs from agencies.)