EU and India Forge Groundbreaking Free Trade Pact, Uniting 2 Billion Consumers
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The European Union and India have reached a historic agreement on a free trade pact, marking a significant milestone in their bilateral relations. The deal, dubbed the 'mother of all deals,' brings together a massive market of nearly two billion people and represents 25% of the global GDP. European Commission President Ursula von der Leyen announced the conclusion of the negotiations, calling it a 'historic moment' for the two nations. The pact is expected to boost trade flows between India and the EU's 27 member states, with bilateral trade in goods valued at $135 billion in 2023-24. The agreement provides duty-free access to over 90% of Indian goods in the EU market, including major economies like Germany, France, Italy, Spain, and Belgium. Commerce Secretary Rajesh Agrawal described the pact as 'ambitious, balanced, forward-looking, and mutually beneficial.' The timing of the agreement is seen as timely, given global efforts to derisk supply chains and ongoing trade disruptions linked to US policies. Prime Minister Narendra Modi hailed the deal as a 'model partnership' between two major economies, underlining its global economic significance and potential benefits for citizens on both sides. The pact was formally signed during a two-day India visit by European Council President Antonio Costa and Ursula von der Leyen, who were chief guests at the Republic Day celebrations and later held a summit with Prime Minister Modi. The agreement is expected to have a significant impact on trade and economic relations between India and the EU.
