Image Source: Outlook India
The European Union and India finalized a historic free trade agreement, hailed as the “mother of all deals.” The pact creates a trade zone covering two billion people, promising growth in goods, services, and strategic cooperation. Leaders emphasized deeper ties in security, clean energy, and mobility.
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Key Highlights
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Historic Agreement: After nearly two decades of negotiations, the EU–India Free Trade Agreement (FTA) was signed in New Delhi during the 16th EU–India Summit, co-chaired by Prime Minister Narendra Modi, European Commission President Ursula von der Leyen, and European Council President António Costa.
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Scale of Impact: Von der Leyen declared the deal establishes a free trade zone of two billion people, unlocking opportunities for businesses and consumers across continents.
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Strategic Partnership: Beyond trade, the summit outlined plans to expand cooperation in defense, clean energy, and digital innovation, reinforcing India–EU ties amid global geopolitical uncertainty.
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Economic Benefits: The FTA is expected to boost bilateral trade volumes, reduce tariffs, and enhance market access for sectors including pharmaceuticals, textiles, IT services, and renewable energy.
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Mobility & People-to-People Links: Agreements on student and professional mobility aim to strengthen cultural and educational exchanges.
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Global Context: Leaders stressed the deal’s significance in countering protectionist trends and ensuring supply chain resilience. Modi described it as a “major opportunity for the public,” while von der Leyen emphasized shared values of democracy and rule of law.
This landmark deal positions India and the EU as stronger partners in shaping global trade, security, and sustainability.
Sources: Reuters, Economic Times, India Today, WION
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