The European Union and India have finally agreed on a historic trade deal that opens up free trade for New Delhi with the 27 EU countries. Importantly, this comes after nearly two decades of stalled negotiations.
Points of attention
- The trade deal is expected to boost economic opportunities for the 1.4 billion people in India and millions in Europe, with a significant impact on trade volume.
- The official signing of the agreement is pending legal verification, with expectations for implementation within a year.
EU-India trade agreement — what is known
According to insiders, the official signing of the agreement between Brussels and New Delhi should take place after legal verification of all details.
In total, they may spend another 5-6 months on this.
"We expect the deal to be implemented within a year," an Indian official told the media.
The document, which is currently under analysis, states that India should reduce tariffs on cars from the EU from 110% to 10%, and also largely eliminate tariffs of 44% on machinery, 22% on chemicals, and 11% on pharmaceuticals from the EU.
Indian Prime Minister Narendra Modi has already made a statement on this matter.
According to the latter, people around the world call this agreement the “mother of all agreements.”
It will open up great opportunities for the 1.4 billion people of India and millions of people in Europe, Modi assures.
What is important to understand is that trade volume between India and the EU in the fiscal year ending March 2025 reached $136.5 billion.
