India and the European Union announced they have reached a historic trade deal after nearly two decades of negotiations, a move that reflects a strategic shift in the global trade map amid rising tensions with the United States.
Indian Prime Minister Narendra Modi said today (Tuesday) that the deal, described by observers as the “mother of all deals”, opens broader economic horizons for India’s more than 1.4 billion people and millions of Europeans, stressing that the new partnership will boost growth, investment and trade exchanges between the two countries.
Prime Minister Modi and European Commission President Ursula von der Leyen are expected to formally announce details of the agreement at the India-EU summit in New Delhi, during which trade exchanges between the two parties will reach $136.5 billion during the 2024-2025 financial year.
The deal comes in the context of a global race to rebuild economic unions, with the European Union recently stepping up trade deals with multiple blocs and countries including Mercosur, Indonesia, Mexico and Switzerland, while India has also signed similar deals with the UK, New Zealand and the Sultanate of Oman.
Analysts believe the India-Europe agreement reflects a mutual desire to reduce dependence on the US market, especially in light of the tough trade policies pursued by US President Donald Trump, including high tariffs on Indian goods, and the stalled trade talks between Washington and New Delhi.
The agreement is expected to enter into force within a year after completing the necessary legal formalities, making it one of the most prominent multilateral trade agreements of this decade.
India and the European Union have announced a historic trade deal after nearly two decades of negotiations, a move that reflects a strategic shift in the global trade landscape amid heightened tensions with the United States.
Indian Prime Minister Narendra Modi said today (Tuesday) that the deal, which observers have described as the “mother of all deals”, will create vast economic opportunities for more than 1.4 billion people in India and millions of Europeans, stressing that the new partnership will boost growth, investment and trade exchanges between the two countries.
Prime Minister Modi and European Commission President Ursula von der Leyen are expected to formally announce details of the agreement at the India-EU summit in New Delhi, when trade between the two parties will reach $136.5 billion in the 2024-2025 financial year.
The deal was announced amid a global race to rebuild economic unions, with the European Union recently stepping up trade deals with various blocs and countries including Mercosur, Indonesia, Mexico and Switzerland, and India signing similar deals with the UK, New Zealand and Oman.
Analysts believe the India-EU deal reflects a mutual desire to reduce dependence on the US market, especially in light of the tough trade policies promoted by US President Donald Trump, including high tariffs on Indian goods and stalled trade negotiations between Washington and New Delhi.
The agreement is expected to enter into force within a year after completing the necessary legal formalities, making it one of the most important multilateral trade agreements of this decade.
