India-EU Trade Deal Imminent: Spain's Albares Hails Historic Agreement
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India and the European Union are on the cusp of a landmark trade agreement, which could be finalized in the next few days. Spain's Foreign Minister José Manuel Albares made the announcement during a visit to New Delhi on Wednesday. According to Albares, the deal would create the world's largest free-trade zone, sending a strong signal against economic coercion. This comes as the US imposes steep tariffs on India and threatens higher tariffs on Europe for its refusal to support US plans in Greenland. The agreement would not only boost trade between the two regions but also safeguard against economic pressure. Albares emphasized that the EU and India believe in free trade and are committed to protecting themselves from economic coercion. The European Commission President, Ursula von der Leyen, is set to arrive in India on Sunday to iron out the remaining issues, primarily related to carbon levies and import duties. The deal is expected to create a massive market of 2 billion people, accounting for nearly a quarter of global GDP. Trade between the EU and India has seen a significant increase of almost 90% in the past decade, valued at 120 billion euros in 2024. The two nations are also exploring stronger defence ties, with a focus on building resilient manufacturing capabilities. A joint venture between Airbus and Tata Group to produce C-295 aircraft in India is a prime example of the type of trade relationship that should be replicated. The first made-in-India Airbus aircraft is expected to roll off production lines before September 2026, slightly ahead of schedule.
