27-01-2026

India, EU Finalize Landmark Free Trade Agreement

Date: 27-01-2026
Sources: bbc.com: 1 | cnbc.com: 1 | edition.cnn.com: 1 | nytimes.com: 1

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Indian diplomats and EU officials signing a landmark free trade agreement at a press conference, documentary-style photography, bright and formal lighting with a hint of diplomatic ceremony ambiance, captured with a medium-format lens, conveying a sense of cooperation and global economic significance.

Summary

India and the European Union have concluded a significant free trade agreement after nearly two decades of negotiations, aiming to deepen economic ties and reduce dependence on the US amid trade tensions with the Trump administration.

Key Points

  • The deal is expected to expand market access for Indian exports to Europe and ease entry for European investments and goods into India.
  • The agreement represents 25% of global GDP and one-third of global trade, making it a significant development in the global economy.
  • The deal will create a market of 2 billion people and is expected to boost India's economy, particularly in sectors such as textiles, gems, and jewelry.
  • The EU is India's largest trading partner, with bilateral trade amounting to over $140 billion in 2024.

Articles in this Cluster

Trade deal: India and EU announce FTA amid Trump tariff tensions

The European Union and India have announced a landmark trade deal after nearly two decades of negotiations. The deal aims to deepen ties between the two entities amid tensions with the US, particularly regarding tariffs imposed by the Trump administration. The agreement is expected to expand market access for Indian exports to Europe and ease entry for European investments and goods into India. The deal represents 25% of global GDP and one-third of global trade, making it a significant development in the global economy.
Entities: European Union, India, Trade deal, Ursula von der Leyen, António CostaTone: positiveSentiment: positiveIntent: inform

India and European Union have closed a 'landmark' free trade deal, Prime Minister Modi says

India and the European Union have finalized a 'landmark' free trade agreement, according to Indian Prime Minister Narendra Modi. The deal, which has been in the making for nearly two decades, is expected to boost India's economy, particularly in sectors such as textiles, gems, and jewelry. The agreement will create a market of 2 billion people and complement India's existing trade deals with Britain and the European Free Trade Association. The EU is India's largest trading partner, with bilateral trade amounting to over $140 billion in 2024. While the deal is seen as a significant milestone, experts note that it will not replace the need for an India-U.S. trade agreement.
Entities: India, European Union, Narendra Modi, Ursula von der Leyen, United StatesTone: positiveSentiment: positiveIntent: inform

India and EU finalize ‘mother of all deals’ with landmark trade pact | CNNClose icon

India and the European Union have finalized a landmark trade deal after nearly two decades of negotiations. The agreement is expected to open up India's vast market to free trade with the EU, its largest trading partner. Indian Prime Minister Narendra Modi announced the deal, calling it the 'mother of all deals', and stated that it will bring major opportunities for India's 1.4 billion people and millions in Europe. The deal is seen as a hedge against fickle ties with the US, particularly after an India-US trade deal collapsed last year. Trade between India and the EU stood at $136.5 billion in the fiscal year through March 2025, and the formal signing of the deal is expected to take place after legal vetting in five to six months.
Entities: India, European Union, Narendra Modi, Ursula von der Leyen, United StatesTone: positiveSentiment: positiveIntent: inform

In Trump’s Shadow, India and the European Union Expand Trade Ties - The New York Times

The European Union and India have announced a trade agreement after nearly two decades of negotiations. The deal is seen as a significant step in strengthening economic ties between the two entities, particularly in the face of uncertainty caused by the US under President Trump's leadership. The agreement includes reducing Indian tariffs on European cars and eliminating tariffs on many European goods. It is expected to double the total value of goods traded between the EU and India within six years.
Entities: European Union, India, President Trump, United States, ChinaTone: neutralSentiment: positiveIntent: inform