India and the European Union Announce Landmark Free Trade Deal Affecting Nearly 2 Billion People

 

India and the European Union have announced a historic free trade agreement (FTA) that will reshape global commerce and affect nearly two billion people across Europe and South Asia. The deal, years in the making, represents one of the most ambitious trade accords signed in recent decades and signals a major shift in global economic alignment.

Officials from both sides described the agreement as a strategic breakthrough, designed to boost economic growth, reduce trade barriers, and strengthen cooperation at a time of geopolitical uncertainty and supply-chain realignment. Once fully implemented, the agreement is expected to significantly expand trade in goods, services, technology, and investment flows between the two economic blocs.

The India–EU free trade deal aims to eliminate or reduce tariffs on a wide range of goods and services while establishing common standards for trade facilitation, intellectual property, and dispute resolution.

Key areas covered by the agreement include:

• Industrial goods and manufacturing

• Agriculture and food products

• Digital services and technology

• Pharmaceuticals and healthcare products

• Automotive and clean-energy sectors

• Financial and professional services

According to negotiators, more than 90% of tariffs between India and the EU will be phased out over time, making cross-border trade cheaper and more efficient for businesses and consumers.