Name: India, EU Reach Sweeping Trade Deal
Uploaded: 2026-01-28T07:41:48.000Z
Description: The agreement will slash tariffs on most goods, a move that boosts two-way trade and reduces reliance on the United States.

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A historic trade deal between the European Union (EU) and India that was decades in the making was finalized Monday as both sides seek to deepen economic ties amid global trade tensions.

The agreement will slash tariffs on most goods, a move that boosts two-way trade and reduces reliance on the United States.

"Yesterday, a big agreement was signed between the European Union and India," Indian Prime Minister Narendra <a href="https://archive.ph/YLI4M#selection-1515.0-1515.111">Modi said</a>. "People around the world are calling this the mother of all deals. This agreement will bring major opportunities for the 1.4 billion people of India and the millions of people in Europe.”

Free trade will be applied to almost all goods between 27 members of the EU and India, covering everything from textiles to medicines, and reducing high import taxes for European wine and cars.

The <a href="https://archive.ph/fuvui#selection-1397.0-1401.1">India-EU Free Trade Agreement (FTA)</a> comes at a time when the United States is still trying to secure a trade agreement with India. Talks between the two countries fell apart last year.

NTD reached out to the White House for the Trump administration’s reaction to the new deal, but did not receive a response by publication.

India has sought to offset the impact of the combined 50 percent U.S. tariffs,  which include an extra 25 percent levy on Indian goods for its purchases of discounted Russian oil.

Meanwhile, the EU under the deal gets access to one of the world’s fastest-growing economies. The FTA also supports European exporters and investors in reducing their reliance on more volatile markets.

The major free trade agreement is considered a major strategic breakthrough after more than 20 years of negotiations.

"Europe and India are making history today," European Commission President Ursula von der Leyen said in a post on social media. "This is only the beginning."

In a move that signals a partnership beyond commerce, the two parties have also agreed on a framework for deeper defense and security cooperation, and a separate pact aimed at easing mobility for skilled workers and students.

Trade between India and the EU stood at $136.5 billion in the fiscal year through March 2025. The two sides hope to boost those numbers to about $200 billion by 2030.

The formal signing of the agreement is expected to take place after five to six months of legal vetting.

<em>Reuters and The Associated Press contributed to this report.</em>

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