India-EU Trade Deal Marks Major Shift in Global Trade Ties

India and the European Union have concluded a landmark India-EU trade deal, ending nearly two decades of talks and creating one of the largest free trade agreements in history. The India-EU Free Trade Agreement (FTA) was announced today at the 16th India-EU Summit in New Delhi, with leaders from both sides hailing it as transformative for global trade and economic ties.

Prime Minister Narendra Modi described the agreement as the most significant in India’s history, saying it will boost manufacturing, support services and strengthen supply chains. European Commission President Ursula von der Leyen called it the “mother of all deals” and said the pact creates a free trade zone covering about 2 billion people.

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Negotiations on the FTA, which started in 2007 and picked up pace in recent years, were formally concluded at the summit. Officials said the text will now undergo legal review, with signing expected later this year and implementation likely next year.

The agreement will slash tariffs on a wide range of goods and services, making it easier for Indian exports such as textiles, chemicals and pharmaceuticals to enter European markets. India is also set to reduce high import duties on European cars over time, opening the premium vehicle segment to brands like Mercedes-Benz and BMW.

Leaders said the deal will deepen economic integration and create new investment flows. It signals a shift in global trade dynamics as both India and the EU seek stronger partnerships beyond traditional blocs amid global tensions and rising U.S. tariffs.