NEW DELHI, India — Prime Minister Narendra Modi on Tuesday announced the signing of a free trade agreement between India and the European Union, calling it the largest trade pact ever concluded by India and a milestone that will create wide-ranging opportunities for businesses, consumers, and skilled professionals on both sides.
Speaking at a joint press conference at Hyderabad House with European Commission President Ursula von der Leyen, Modi said the agreement reflected growing trust between the two partners and a shared commitment to peace, stability, and cooperation at a time of global uncertainty.
Under the agreement, tariffs on more than 90 percent of European Union goods exported to India will be eliminated or reduced. This includes steep duties of up to 44 percent on machinery, 22 percent on chemicals, and 11 percent on pharmaceuticals, most of which will be phased out. Tariffs on EU beer will be reduced to 50 percent, while duties on chemicals, aircraft, and spacecraft will be eliminated for nearly all products.
The European Union estimates the deal could double its exports to India by 2032 and generate annual duty savings of up to 4 billion euros for European companies. The bloc currently accounts for nearly 17 percent of India’s total exports, offering Indian businesses expanded access to a vast market under the new framework.
The agreement also includes 500 million euros in EU support over the next two years to help India reduce greenhouse gas emissions and accelerate its green transition. EU exports to India already support about 800,000 jobs in Europe, and officials said the pact is expected to create many more.
European officials described the agreement as a significant boost to exports and a deepening of economic ties amid a volatile global trade environment. Together, India and the EU represent a combined population of roughly 2 billion people.
In addition to the trade pact, India and the European Union signed a mobility agreement aimed at easing the movement of Indian students, workers, and professionals across EU countries.
Von der Leyen hailed the conclusion of the negotiations, referring to the agreement as “the mother of all deals.”
“This is only the beginning. We will grow our strategic relationship to be even stronger,” she said.
Separately, the summit also marked the launch of an EU-India Security and Defense Partnership, signaling a broader expansion of cooperation beyond trade and economic ties. (Source: IANS)
