India and EU Sign Historic “Mother of All Deals” Trade Agreement

India and the European Union (EU) have formalized a major trade agreement, hailed as the “mother of all deals,” creating a market of over two billion people. The deal, concluded after nearly 20 years of negotiations, aims to reduce or remove tariffs on nearly 97% of European exports to India, potentially saving the EU up to 4 billion euros ($4.75 billion) annually in duties.

The pact was signed during a ceremony at Hyderabad House in New Delhi, attended by India’s Prime Minister Narendra Modi, European Commission President Ursula von der Leyen, and European Council President Antonio Costa. Modi described the agreement as a historic opportunity to boost trade and investment for both India’s 1.4 billion citizens and the 27 EU member states.

“This pact will create immense opportunities for both sides, representing roughly 25% of global GDP and a third of world trade,” Modi said. He highlighted that the deal strengthens India’s access to European technology, investment, and markets while supporting domestic economic growth.

Von der Leyen emphasized that the agreement marks a historic milestone, creating the largest free trade zone in modern history. “Europe and India are making history today,” she said, noting that European companies will enjoy significant first-mover advantages in the Indian market.

Under the agreement, tariffs on cars will gradually drop from 110% to as low as 10%, while wine tariffs will decrease from 150% to 20%. Duties on processed foods such as pasta and chocolate will be completely eliminated. European firms will also gain preferential access to India’s financial services and maritime sectors.

India, on its part, will benefit from greater access to European markets for textiles, gems, jewelry, leather goods, and services. Both sides have agreed to pursue parallel accords on seasonal worker mobility, skilled professional exchanges, and defense cooperation.