Indian Prime Minister Narendra Modi announced an agreement between the European Union and India on free trade, describing it as the "mother of all deals."
According to information provided by BILD, this agreement affects about 25% of the global economy and a third of global trade, opening new opportunities for 1.4 billion citizens of India and Europeans.
Negotiations on this issue lasted nearly 20 years and concluded against the backdrop of tensions in international trade and the tariff policy of former U.S. President Donald Trump's administration, which disrupted traditional trade chains. The agreement is seen as a strategically important step for both sides, allowing them to reduce dependence on the U.S. and diversify economic ties. Currently, the EU is India's largest trading partner.
Under the terms of the agreement, many tariffs will be significantly reduced or eliminated: most goods from Europe will be exempt from tariffs. In particular, this includes reducing tariffs on machinery and electronics from 44% to zero, on iron and steel from 22%, and on processed products by up to 50%. Tariffs on wine will decrease from 150% to 20-30%, while olive and other vegetable oils will become completely duty-free.
Details of the deal will be presented by Ursula von der Leyen and Narendra Modi in New Delhi. After a legal review, which will take several months, the agreement may come into effect within a year.
