EU, India Finalise Landmark Free Trade Deal, Creating Market of Two Billion People: Ursula von der Leyen

New Delhi: European Commission President Ursula von der Leyen on Tuesday announced the successful conclusion of the long-awaited India–European Union Free Trade Agreement, describing it as the “mother of all deals” that establishes a free trade zone encompassing nearly two billion people.

“Europe and India are making history today. We have concluded the mother of all deals and created a free trade zone of two billion people, with both sides poised to benefit,” von der Leyen said in a post on X. She added that the agreement marks the beginning of a deeper and stronger strategic partnership between the two sides.

The pact is expected to significantly boost Indian manufacturing by eliminating tariffs on 97 per cent of India’s exports, particularly benefiting sectors such as textiles, gems and jewellery, and leather. At the same time, it will open India’s market to European automobiles and machinery.

European Council President Antonio Costa welcomed the agreement, expressing optimism about a stronger EU–India partnership built on shared values and greater ambition. He said the deal would deliver tangible benefits for citizens while promoting shared prosperity, security and leadership on global challenges in a resilient multipolar world.

The agreement was finalised at the summit held at Hyderabad House, marking the culmination of an 18-year negotiation process between India and the EU. Prime Minister Narendra Modi hosted von der Leyen and Costa and hailed the pact as a “perfect example of partnership” between two major global powers.

Announced during the 16th India–EU Summit in New Delhi, the deal is expected to come into force next year and is seen as a major step toward deepening bilateral ties across multiple sectors.

Discussions at the summit focused on trade, defence and security, climate change, critical technologies, and strengthening the rules-based global order. The two sides are also set to unveil a defence framework agreement and a strategic agenda, at a time when Europe is seeking to diversify its global partnerships beyond the US and China.

With inputs from IANS