India, EU Set to Seal Landmark Free Trade Pact Amid Republic Day Celebrations

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India and the European Union are on the cusp of a historic free trade agreement, with leaders set to announce the successful conclusion of negotiations on Tuesday. The pact, described as the 'mother of all deals', would grant duty-free access to over 90% of Indian goods in the vast EU market, integrating a consumer base of over 1.9 billion people. It would also remove tariff and non-tariff barriers on more than 90% of Indian goods, benefiting sectors such as textiles, leather, and electronics. The deal, which has been in the works since June 2022, would be operational by early next year, giving exporters time to prepare for new opportunities. According to official data, India's exports to the EU jumped 16% in November 2025, while imports from the EU rose 11.7% during the same period. The EU sees India as a stable market with sustained growth, while India's exporters currently face stiff competition from duty-free shipments from countries like Bangladesh. The announcement is expected to be made by European Council President Antonio Costa, European Commission President Ursula von der Leyen, and Indian Prime Minister Narendra Modi after the 16th India-EU Summit on Tuesday. The pact would represent 25% of the world's gross domestic product, making it a significant milestone in India-EU trade relations.