The European Union and India concluded negotiations on their largest-ever free trade deal on Tuesday, creating what leaders hailed as a historic and commercially powerful pact that will form a free trade zone of two billion people. European Commission President Ursula von der Leyen said the agreement “deepens the partnership between the world’s largest democracies” and demonstrates that “rules-based cooperation always delivers excellent results.” The deal, which reduces or eliminates tariffs on 96.6 percent of EU goods exports to India, is expected to double EU exports by 2032, support hundreds of thousands of jobs and save European businesses.
India-EU trade deal live updates: FTA to cut tariffs on EU exports by 97%, cut tariffs on food and more
India-EU Trade Deal Live Updates: The EU is India’s largest trading partner, accounting for merchandise trade worth €120 billion in 2024, or 11.5 percent of India’s total trade. Trade in services represented 59.7 billion euros in 2023
India and the EU on Tuesday announced the conclusion of an FTA which has been described by both sides as “the mother of all deals”. Once the formalities are completed in the coming months, the FTA is expected to enter into force early next year.
European Commission President Ursula von der Leyen attended the India-EU summit on Tuesday. The summit marked a milestone in relations between New Delhi and Brussels as both sides sought to strengthen economic and strategic cooperation.
India and the EU began negotiations on an FTA in 2007, but these were suspended in 2013 due to differences over the level of ambition. Nearly a decade later, the process was restarted in June 2022.
The summit saw the conclusion of negotiations for a free trade agreement and the finalization of a security and defense partnership. A framework agreement to facilitate the mobility of Indian students and professionals was finalized as part of the results.
The EU is India’s largest trading partner, accounting for merchandise trade worth €120 billion in 2024, or 11.5 percent of India’s total trade. Trade in services represented 59.7 billion euros in 2023.
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