EU and India near deal worth a quarter of global GDP

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BUSINESS

EU and India near deal worth a quarter of global GDP

European Commission President Ursula von der Leyen said negotiators have made significant progress on the EU-India trade deal, though final steps remain before it can be officially sealed. She described the agreement as “historic” and said both sides are on the cusp of completing it.

EU and India near deal worth a quarter of global GDP

The European Union is close to finalising a long-awaited free trade agreement with India, described by European Commission President Ursula von der Leyen as “historic” and potentially the “mother of all deals.” The pact would link India, one of the world’s fastest-growing major economies, with the 27-nation EU bloc, creating a combined market of 2 billion people and accounting for nearly a quarter of global GDP.

The deal, in the works since 2007 but stalled for nearly a decade, has gained momentum since 2022 alongside the India–EU Trade and Technology Council, which coordinates cooperation on critical technologies, digital governance, and supply-chain resilience. For the EU, India is key to diversifying trade away from China, while India gains deeper access to its second-largest trading partner, boosting exports and advancing its manufacturing ambitions.

Despite optimism, hurdles remain over tariffs, skilled worker mobility, sustainability standards, public procurement, and regulatory alignment. Von der Leyen’s upcoming visit to India is expected to help resolve political-level disputes, paving the way for a final agreement. A completed pact would strengthen trade, investment, technology cooperation, and global supply-chain integration, establishing one of the most influential trade frameworks in the world.

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