WEB DESK: India and the European Union finalized a landmark trade deal on Tuesday, aiming to reduce reliance on fluctuating US relations. The agreement is set to double EU exports to India by 2032 by lowering or eliminating tariffs on 96.6% of traded goods, saving European companies €4 billion ($4.75 billion) annually in duties.
The EU will eliminate tariffs on 99.5% of goods over seven years, with Indian exports like marine products, leather, textiles, chemicals, metals, and jewelry benefiting from zero tariffs, according to India’s trade ministry. Prime Minister Modi highlighted the significance of the deal, describing it as “the mother of all deals,” promising immense opportunities for India’s 1.4 billion citizens and millions in Europe.
Modi and European Commission President Ursula von der Leyen are expected to formally announce the deal at an India-EU summit in New Delhi. Bilateral trade reached $136.5 billion in the fiscal year ending March 2025.
This deal follows the EU’s recent pact with Mercosur and agreements with Indonesia, Mexico, and Switzerland last year. Similarly, India signed deals with Britain, New Zealand, and Oman. These developments reflect global efforts to diversify trade partnerships amid strained US relations under Donald Trump, including tariffs on Indian goods and a failed India-US trade agreement.
The formal signing of the India-EU deal awaits legal clearance, expected in five to six months, with implementation anticipated within a year.
