The European Union and India have concluded long-awaited negotiations, resulting in a free trade agreement. Indian Prime Minister Narendra Modi described the agreement as the "mother of all deals."
According to BILD, this agreement covers about 25% of the global economy and one-third of global trade, opening new opportunities for 1.4 billion citizens of India and the European population.
The negotiations lasted nearly two decades and concluded amid trade conflicts and tariff policies implemented by former U.S. President Donald Trump, which altered traditional trade routes. Both regions view the deal as a strategic step to reduce dependence on the U.S. and expand economic ties. Currently, the EU is India's largest trading partner.
The agreement includes significant reductions and eliminations of tariffs: for most goods from Europe, tariffs will be completely eliminated. For example, tariffs on machinery and electrical equipment, which reached 44%, and on iron and steel, which were 22%, will be abolished. Tariffs on processed products will be reduced to 50%, and on wine—from 150% to 20-30%. Olive oil and other vegetable oils will become duty-free.
According to reports, the details of the agreement will be presented by Ursula von der Leyen and Narendra Modi in New Delhi. After several months of legal review, it may come into effect within the next year.
