India and the European Union have reached a significant milestone by finalizing a landmark trade agreement, as announced by Indian Prime Minister Narendra Modi on Tuesday. This agreement signifies a pivotal moment in decades-long negotiations aimed at enhancing trade ties between India, the world’s most populous nation, and the EU, its largest trading partner.
Modi described the agreement as “the mother of all deals,” emphasizing that it will create substantial opportunities for India’s 1.4 billion people and for millions in Europe. This deal follows extensive discussions lasting nearly 20 years, during which the two sides have sought to reconcile differing trade perspectives.
Specific details about the trade agreement are anticipated to be revealed during a joint announcement with European Commission President Ursula von der Leyen at an upcoming India–EU summit in New Delhi. Current trade figures indicate that commerce between India and the EU reached $136.5 billion in the fiscal year ending March 2025.
The timing of this announcement aligns with the EU’s recent signing of a crucial pact with the South American bloc Mercosur, as well as trade agreements finalized by India with countries such as Britain, New Zealand, and Oman. These agreements reflect a growing trend among global powers to diversify trade partnerships and mitigate risks associated with fluctuating relations with the United States, particularly under the previous administration’s aggressive tariff policies.
The formal signing of the India-EU agreement will take place after a legal vetting process, expected to last between five to six months, with implementation anticipated within a year. This cooperative effort highlights a strategic shift in international trade dynamics as countries seek to bolster their economic resilience amid changing global relationships.
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