The Powerhouse Pact: India and EU Forge Historic Trade Deal

India and the EU have finalized a trade deal reducing tariffs on most goods, aiming to double EU exports to India by 2032. This agreement excludes key agricultural products but involves significant tariff reductions on industrial goods. The deal promises major economic benefits and strengthened diplomatic relations.

In a landmark trade agreement reached on Tuesday, India and the European Union have taken a significant step to cut tariffs on traded goods, hoping to double EU exports to India by 2032. The accord, viewed as a counterbalance to U.S. economic dominance, underscores growing global shifts.

The EU has committed to reducing tariffs on a wide array of Indian goods, including marine, leather, and textile products, with the goal of eliminating tariffs entirely on many items over the next seven years. Indian Prime Minister Narendra Modi celebrated the deal's potential to generate opportunities for billions of people within the two regions.

Notably, the trade pact excludes sensitive agricultural products like soya and beef. In remarks from Davos, Canada's Prime Minister Mark Carney accentuated the critical role of middle powers in navigating global trade dynamics, as India and the EU pave the way for future economic collaborations.