The European Union is on the verge of signing a historic trade deal with India, described by leaders as the “mother of all deals.” EU Commission President Ursula von der Leyen highlighted that the agreement would create a market of two billion people, accounting for nearly a quarter of global GDP, while giving Europe a strategic first-mover advantage in one of the world’s fastest-growing regions.
The deal, decades in the making, follows renewed negotiations since July 2022 and aims to address sensitivities on both sides. It comes amid uncertainty over India’s long-pending trade pact with the US and rising protectionist measures, including proposed US tariffs on the EU and a 50% duty on Indian goods.
The agreement is expected to provide India greater access to EU markets in labour-intensive sectors like textiles, footwear, and gems, while the EU will gain access for automobiles and beverages. Both sides have already concluded 20 of the 24 negotiation chapters, with a formal signing anticipated during the upcoming Republic Day celebrations and the India-EU Summit on January 26–27. Strategic considerations, including countering China’s global dominance in key sectors, have further accelerated talks.
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