NEW DELHI: History was made in New Delhi today as India and the European Union (EU) announced the successful conclusion of their Free Trade Agreement (FTA). In a moment of triumph, European Commission President Ursula von der Leyen turned to Prime Minister Narendra Modi and declared, “We did it.”
“The Mother of All Deals” The agreement, which has been in the pipeline for nearly two decades, is massive in scope. Von der Leyen described it as “the mother of all trade deals,” highlighting the sheer size of the economies involved. “This is not just a trade pact; it is a bridge between two of the world’s largest democracies,” she stated during the joint press conference.
Breaking the Deadlock Negotiations for this deal began back in 2007 but were stalled in 2013 due to disagreements over tariffs on automobiles, wines, and data security. Talks resumed with renewed vigor in 2022. Today’s announcement signals that both sides have finally found common ground. While the full text is yet to be released, the deal is expected to significantly lower import duties on European cars, whiskey, and machinery entering India. In return, Indian textiles, leather goods, and IT services gain preferential access to the lucrative European market.
Strategic Victory For Prime Minister Modi, this is a major diplomatic win. It diversifies India’s trade portfolio and reduces reliance on volatile markets. The deal also includes robust chapters on investment protection and sustainability, setting a new benchmark for modern trade partnerships.
