Indian Prime Minister Narendra Modi announced the conclusion of a free trade agreement between the European Union and India, describing it as the "mother of all deals."
According to data provided by BILD, this agreement affects about 25% of the global economy and a third of global trade, thereby opening new opportunities for 1.4 billion Indians and European citizens.
The negotiations, which lasted nearly 20 years, concluded against the backdrop of trade conflicts and tariff policies of the Donald Trump administration, which disrupted traditional trade chains. Both Brussels and New Delhi view this agreement as a strategically important step that will help reduce dependence on the United States and diversify economic ties. Currently, the EU is India's largest trading partner.
The agreement entails significant tariff reductions and their elimination: for most goods from Europe, they will be completely abolished. In particular, tariffs on machinery and electronics, which previously reached 44%, and on steel and iron, which were 22%, will be eliminated. Tariffs on processed products will be reduced to 50%, and on wine—from 150% to 20-30%. Olive oil and other vegetable oils will become duty-free.
Ursula von der Leyen and Narendra Modi are expected to present the details of the agreement in New Delhi. After several months of legal review, it may come into effect within a year.
