💼 HISTORIC “MOTHER OF ALL DEALS”: India-EU FTA Sealed – 2B People Market, $136B Trade Leap
Prime Minister Narendra Modi hailed the finalized India-EU Free Trade Agreement (FTA) as the “mother of all deals” during the 16th India-EU Summit in New Delhi, creating a 2 billion-person free trade zone covering nearly 25% of global GDP. European leaders Ursula von der Leyen and António Costa joined post-Republic Day announcement, boosting $136.5B bilateral trade with tariff cuts across key sectors.
Summit Spotlight & Timeline
Negotiations relaunched June 2022 after 9-year hiatus; 20 rounds culminated Jan 2026. Legal review precedes signing in 5-6 months, operational by 2027. Von der Leyen, Costa graced Republic Day as chief Guest.
Covers 24 chapters: goods, services, investments, digital trade, GIs. Excludes sensitive agri like dairy, rice.
Trade Gains & Sector Wins
India: Duty cuts on textiles, pharma, electronics, gems, leather, auto parts to EU’s 450M market. EU: Access to India’s services, consumer boom. Boosts supply chains amid US tariffs, China risks.
$136.5B FY25 trade surges; India’s 19th FTA, EU’s largest post-Mercosur/Indonesia pacts.
Strategic Pillars & Beyond Trade
Defence framework, mobility pact unveiled. Focus: defence-security, climate, critical tech, rules-based order. Reduces EU’s US/China reliance; elevates India as Asia anchor.
Key Impacts & J&K Angle
- Exports: Pharma/IT/services gain €-duty free access; $20-30B annual boost projected.
- Investments: EU FDI surges in renewables, EVs, digital infra.
- J&K Benefits: Handicrafts/gems/agri-tech exports to EU; tourism/infra funding via mobility pact.
- Digital: E-commerce, telecom liberalized sans agri protection.
Global Context & Road Ahead
“Month of all deals” caps India’s UK/NZ/Oman pacts. EU eyes India diversification; formal ink post-scrub. Pivotal for geopolitics amid Trump tariffs.
