The European Union and India concluded a free-trade agreement after almost two decades of negotiations, part of an effort to deepen economic ties that has gained momentum due to the Trump administration’s aggressive tariff policies.
“We have concluded the mother of all deals,” European Commission President Ursula von der Leyen said Tuesday in a social-media post. The head of the EU executive, who was in New Delhi to mark the moment with European Council President Antonio Costa, added that the accord “created a free trade zone of two billion people, with both sides set to benefit.”
Indian Prime Minister Narendra Modi hailed the agreement as a means of strengthening India’s manufacturing and services sectors while boosting investor confidence in Asia’s third-largest economy.
“India has completed its biggest and most historic free trade agreement,” Modi said at a joint press briefing in New Delhi. “This historic agreement will make it easier for our farmers and small businesses to reach the European markets.”
The conclusion of negotiations reflects the rapidly shifting global alignment under US President Donald Trump. The EU, despite long clashing with Indian officials on trade policy, is focused on paring back its economic reliance on the US and China. India is trying to shake its protectionist reputation and offset a 50% Trump tariff, while at the same time balance ties with Russia.
