India and EU Sign Landmark Trade Agreement

News: India and the European Union have concluded a historic Free Trade Agreement after nearly 20 years of negotiations, finalised at the 16th India–EU Summit in New Delhi.

Prime Minister Narendra Modi called it the “mother of all deals,” marking a major shift in ties between India and its largest trading partner.

The pact provides for wide-ranging tariff cuts, including phased reductions on cars, while protecting sensitive sectors such as electric vehicles.

It also covers services, investment, regulatory cooperation and geographical indications. Together accounting for about 25% of global GDP, India and the European Union aim to reshape trade flows and strengthen supply chains.

The agreement is expected to come into force in early 2027 after ratification.