India-EU Trade Deal Finalized: PM Modi Announces the ‘Mother of All Deals’

The long-anticipated trade deal between India and the European Union (EU) has been finalized, with Prime Minister Narendra Modi personally announcing the agreement. Describing it as the “Mother of All Deals,” Modi said the historic pact presents a significant opportunity for India and will enhance global confidence in the country.

Historic Agreement Between Two Major Economies

New Delhi: Speaking at India Energy Week, PM Modi highlighted that the trade deal represents nearly 25% of global GDP and around one-third of global trade, marking a milestone in India-EU economic relations. Europe is India’s largest trading partner, and both sides have been negotiating a Free Trade Agreement (FTA) for several years.

“Yesterday, India and the European Union signed a major agreement, which is being referred to globally as the ‘Mother of All Deals,’” Modi said. “This deal brings substantial opportunities for millions of people in India and European countries alike.” He emphasized that the India-EU FTA complements the India-UK trade agreement, boosting manufacturing and ancillary services.

Benefits for Indian Industries

The FTA negotiations began in 2007 but stalled in 2013 over certain issues. Talks resumed in June 2022, and after 18 rounds of negotiations, the agreement has been finalized. The deal provides significant tariff relief for Indian exports to the EU in sectors such as textiles, leather and footwear, gems and jewellery, chemicals, and marine products. Currently, EU tariffs on Indian exports range from 3.8% on average, up to 26% on marine products, 12.8% on chemicals, and 17% on leather goods. India’s average import tariff on EU goods is around 9.3%.

Opportunities in the Energy Sector

PM Modi also highlighted India’s growing energy demand, noting plans for $100 billion investment in oil and gas by the end of this decade. He stated that India aims to become the world’s largest oil refining hub, increasing capacity from 260 million metric tons to 300 million metric tons.

This historic deal is expected to strengthen trade, reinforce democratic values, and bolster the rule of law, creating long-term benefits for both India and the EU.