India and the European Union have concluded a landmark free trade agreement after nearly two decades of negotiations. The agreement provides for the elimination or significant reduction of tariffs on approximately 90% of bilateral trade, marking a major step toward deeper economic integration between the two regions.
Key provisions include a substantial reduction in Indian import duties on EU-origin automobiles, with tariffs falling from 110% to 10%, and a sharp cut in wine tariffs from 150% to a range of 20–30%. In return, Indian exports of jewelry and textiles, as well as furniture, chemicals, leather goods, and metals, will gain duty-free access to the EU market. The agreement is expected to materially enhance trade flows, with EU goods exports to India projected to double by 2032.
Beyond the immediate trade benefits, the deal carries broader strategic significance. Both India and the EU view the agreement as a means to diversify supply chains, strengthen bilateral investment linkages, and reduce overdependence on the US market. Given its scale, scope, and long gestation period, the agreement is widely being characterized as a transformational—or “mother of all”—trade deal.
