The long-awaited India-EU free trade deal has finally been concluded, and the timing couldn’t be more significant. Economies across Asia are actively seeking to diversify their export markets beyond the United States. In fact, this strategic shift is one of the main reasons why Asian export growth held up so well last year. The India-EU agreement further strengthens this dynamic.
Some are calling it the “mother of all deals,” not only because of its scale, but also because it signals what could be the start of a broader shift in global trade alignments. It also highlights the EU’s willingness to take a patient and pragmatic approach to responding to India’s sensitivities regarding opening up certain sectors, an approach on which the US has arguably been less flexible.
Overall, the agreement marks an important milestone for both India’s trade diversification ambitions and Asia’s evolving export landscape. Below we discuss what the deal means for India.
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