India and EU Nearing Major Free Trade Agreement, Dubbed the ‘Mother of Deals’

Post by : Mina Rahman

India and the European Union (EU) are on the cusp of completing a groundbreaking free trade agreement (FTA) that encompasses roughly 25 percent of the globe’s GDP. Prime Minister Narendra Modi hailed the deal as the "mother of all deals," underlining the vast possibilities it presents for industries and citizens on both sides.

During a virtual address at the Indian Energy Week, PM Modi pointed out that this pivotal agreement marks a strong partnership between two of the world's largest economies. He noted that the pact would especially enhance India's manufacturing sectors including textiles, gems and jewellery, as well as leather goods.

The India-EU trade agreement is anticipated to provide a substantial boost to the manufacturing sector and strengthen services, complementing India's existing trade discussions with the United Kingdom. This deal covers nearly one-third of global trade, reflecting a mutual respect for democracy and the rule of law shared by India and the EU.

Negotiations for this FTA began back in 2007 but faced numerous interruptions over the years. Its finalization symbolizes a new era in global trade relations amidst evolving international landscapes. European Commission President Ursula von der Leyen, who recently participated in India's Republic Day festivities, also referred to this agreement as the "mother of all trade deals."

The arrangement is expected to lower tariffs on a wide range of consumer and industrial goods traded between India and EU nations. While certain agricultural products may remain outside the scope, the deal promises improved market access for EU automotive exports, subject to specific export limits.

This historic pact is projected to enhance economic interlinkages, generate employment opportunities, and unlock new pathways for investment and commerce between India and the European Union, thereby fortifying their strategic alliance.