India, EU Unveil Groundbreaking Trade Deal, Redrawing Global Landscape
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The historic agreement between India and the European Union marks a significant milestone in global trade, solidifying India's position as a key player in the emerging multipolar world. The deal, which is expected to boost bilateral trade to $500 billion by the end of the decade, showcases India's growing economic and strategic influence. The pact, which includes a trade deal, a defence and security partnership, and a comprehensive strategic agenda, is a testament to India's ability to forge strong relationships with major global powers. This partnership will enable India to tap into Europe's high-tech expertise, while also providing Indian businesses with access to the EU's lucrative market. The deal's significance extends beyond trade, as it also marks a significant shift in India's foreign policy. By engaging with the EU on a deeper level, India is sending a strong message to the world that it is a player to be reckoned with, rather than just a rule-taker. This partnership will enable India to leverage its growing economic and strategic influence to shape the global order. The agreement is expected to be formally initialled in January 2027, after which it will be ratified by the European Parliament. Once implemented, the deal will see up to 90% of Indian exports to the EU enter on zero duty, dramatically improving India's position in the global market. The partnership will also have a significant impact on India's neighbourhood, as it will neutralise the advantage enjoyed by countries such as Pakistan, Bangladesh, and Sri Lanka, which have long benefited from special preferential access to the EU. The deal's defence and security component will see European defence majors partnering directly with India's private sector, without being throttled by bureaucratic hurdles. This will enable joint ventures that can design and build military platforms in India, taking advantage of European technology and Indian manufacturing capacity. The comprehensive strategic agenda will take the partnership forward over the coming decade, with a focus on cooperation in sensitive domains such as high-end technology, dual-use systems, and critical supply chains. The agreement will also see the two sides working together to strengthen their supply chains, with a focus on creating jobs and driving economic growth. For Indian Prime Minister Narendra Modi, the deal is a significant achievement, marking a major milestone in his vision of a multipolar world order. By engaging with the EU on a deeper level, India is sending a strong message to the world that it is a player to be reckoned with, rather than just a rule-taker. This partnership will enable India to leverage its growing economic and strategic influence to shape the global order.
