India, EU wrap up talks for landmark trade deal amid strained US ties
NEW DELHI, Jan 27 (Reuters) – India and the European Union have finalised a landmark trade deal, Indian Prime Minister Narendra Modi said on Tuesday, as the two sides seek to hedge against fickle ties with the U.S..
After nearly two decades of on-off negotiations, the deal will pave the way for India to open up its vast and guarded market, the world’s most populous, to free trade with the 27-nation EU, its biggest trading partner.
“It will be a balanced, forward-looking deal for better economic integration with the EU. The deal will propel trade and investment between both sides,” said India Trade Secretary Rajesh Agrawal.
Trade between the two sides stood at $136.5 billion in the fiscal year through March 2025.
FLURRY OF TRADE DEALS
The formal signing would take place after legal vetting expected to last five to six months, an Indian government official aware of the matter said.
“We expect the deal to be implemented within a year,” the official added.
The agreement comes days after the EU signed a pivotal pact with the South American bloc Mercosur, following deals last year with Indonesia, Mexico and Switzerland.
Advertisement · Scroll to continue
Yesterday, a big agreement was signed between the European Union and India,” Modi said.
“People around the world are calling this the mother of all deals. This agreement will bring major opportunities for the 1.4 billion people of India and the millions of people in Europe,” he said.
Modi and European Commission President Ursula von der Leyen are expected to make a joint announcement at an India–EU summit in New Delhi, along with the details of the deal, later on Tuesday.
Trade between India and the EU stood at $136.5 billion in the fiscal year through March 2025.