Tue, 27 Jan 2026

Tue, 27 Jan 2026 India and EU announce 'mother of all trade deals'

The long-awaited deal comes as both Delhi and Brussels contend with economic and geopolitical pressure from the US.

* The European Union and India have agreed on a landmark trade deal after nearly two decades of talks.
* The deal will allow for free trade of goods between the two sides, including tariff cuts across various goods and services.
* The agreement includes: + Tariff elimination on most exports of chemicals, machinery, and electrical equipment + Reduction or elimination of tariffs on textiles, leather, marine products, handicrafts, gems, and jewelry + Duty reduction to 10% for motor vehicles under a quota of 250,000 units
* India will also cut tariffs on wine, beer, and olive oil from the EU.
* The deal is expected to boost trade between the two sides, which together make up nearly 25% of global GDP and a market of over 2 billion people.
* The agreement also includes a joint security partnership and a mobility framework that eases restrictions for professionals traveling between India and the EU.
* The deal comes as both India and the EU contend with economic and geopolitical pressure from the US, including trade tensions and tariffs.
  >>