The European Union and India have concluded negotiations on their biggest trade agreement to date, alongside the signing of a landmark EU-India Security and Defence Partnership.
European Commission President Ursula von der Leyen and European Council President António Costa finalized the historic free trade agreement during their visit to New Delhi.
Von der Leyen said the deal strengthens EU-India relations by promoting diversification, boosting resilience, and providing long-term economic certainty. She described India and the EU as trusted strategic partners committed to helping businesses expand while reducing critical dependencies.
In a joint statement with Indian Prime Minister Narendra Modi, the leaders announced that the agreement creates a combined market of nearly two billion people, calling it “the mother of all deals.”
They added that the partnership between the two economic giants sends a strong global signal that cooperation remains the best response to shared challenges.
Under the agreement, trade between the EU and India will become easier, faster, and less costly. EU exporters are expected to save up to €4 billion annually in tariffs, with about 90 per cent of EU export duties either eliminated or reduced.
India will cut tariffs on wine from 150 per cent to 75 per cent initially, with further reductions to as low as 20 per cent over time. Duties on olive oil will also fall gradually from 45 per cent to zero within five years.
To safeguard sensitive European agricultural sectors, products such as beef, poultry, rice, and sugar have been excluded from tariff liberalization.
The deal also includes commitments on environmental protection, labour rights, women’s empowerment, and climate action.
In addition, the EU-India Security and Defence Partnership is expected to strengthen cooperation on maritime security and enhance joint efforts to counter cyber and hybrid threats.
