India-European Union Free Trade Agreement Concluded

India and the European Union have concluded a free trade agreement after nearly two decades of negotiations. This 'mother of all deals' will immediately remove duties on 90% of Indian goods entering the European Union, including a 12% tariff on textiles and apparel. This agreement is particularly crucial for India's textile and apparel exporters, who have been significantly impacted by 50% tariffs imposed by the United States. The deal is expected to boost India's exports to the European Union by 20-25% annually, potentially doubling in three to four years, and will also make luxury cars and wines from the European Union less expensive in India. Prime Minister Narendra Modi hailed the pact as a 'ray of hope' for an ambitious India, urging manufacturers to seize the opportunity. While the agreement offers substantial benefits, analysts warn of near-term risks due to a one-year implementation gap and the suspension of preferential tariffs for 2026-2028. Indian exporters will also need to meet strict European Union technical and safety norms.