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28-01-2026
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EU-India Landmark Trade Deal Announced Amid Global Tensions

Date: 28-01-2026
Sources: bbc.com: 1 | cnbc.com: 1 | scmp.com: 1
Image for cluster 3
Image Prompt:

Indian and European Union business representatives signing a landmark free trade agreement, documentary photography style, soft natural light pouring through a modern conference room window, capturing the moment of cooperation and mutual benefit amidst global trade tensions, shot with a 50mm lens, conveying a sense of optimism and economic partnership.

Summary

The European Union and India have agreed on a landmark free trade deal after nearly two decades of negotiations, aiming to deepen ties, reduce tariffs, and boost investment flows amid global trade tensions.

Key Points

  • The deal eliminates or reduces tariffs on most exports of chemicals, machinery, and electrical equipment.
  • Tariffs on motor vehicles will be reduced, with European cars facing a slashed import tax from 110% to 10% with an import quota.
  • The agreement is expected to double EU goods exports to India by 2032 and boost investment flows.
  • Investors see opportunities in sectors such as electronics, luxury goods, autos, and financial services.

Articles in this Cluster

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

28-01-2026

The European Union and India have announced a landmark trade deal after nearly two decades of negotiations. The agreement aims to deepen ties between the two entities amid tensions with the US. The deal will eliminate tariffs on most exports of chemicals, machinery, and electrical equipment, and reduce duties on motor vehicles. It will also support investment flows, improve access to European markets, and deepen supply-chain integration. The agreement is seen as a significant step in the bilateral relationship and a message that cooperation is the best answer to global challenges.
Entities: European Union, India, Ursula von der Leyen, Narendra Modi, US • Tone: positive • Sentiment: positive • Intent: inform

EU-India trade deal: Investors see opportunities in these sectors

28-01-2026

The European Union and India have sealed a major trade deal, representing about 25% of global GDP and a third of global trade. The agreement will lower or eliminate tariffs on over 90% of EU goods exports to India, with significant reductions in tariffs on machinery, electrical equipment, wines, and spirits. Investors see opportunities in various sectors, including electronics, luxury goods, autos, and financial services. The deal is expected to benefit European industries such as automotive, aerospace, machinery, and chemicals, as well as Indian markets for EU financial services firms.
Entities: European Union, India, Narendra Modi, Ursula von der Leyen, European Commission • Tone: positive • Sentiment: positive • Intent: inform

Historic EU-India trade deal to slash auto tariffs, double bloc’s India exports by 2032 | South China Morning Post

28-01-2026

The European Union and India have concluded negotiations on a free-trade deal after nearly two decades, aiming to diversify EU trade ties and reduce dependence on China and the US. The agreement is expected to double EU goods exports to India by 2032 and significantly reduce tariffs on EU exports, particularly in the automotive sector. The deal will slash the 110% import tax on European cars to 10% with an import quota of 250,000 vehicles per year.
Entities: European Union, India, Brussels, China, US • Tone: positive • Sentiment: positive • Intent: inform