India-EU Free Trade Deal: Who Wins Bigger, And Why Trump Loses Leverage, Know Details

India and the European Union have finalised a landmark free trade agreement, widely being described as the “mother of all trade deals,” reshaping global trade equations and weakening the impact of US President Donald Trump’s tariff threats. While both sides stand to gain significantly, early indicators suggest the European Union may reap greater immediate benefits, even as India secures long-term strategic advantages. The agreement opens a vast 27-nation European market to India, with 99 percent of Indian exports set to receive duty-free access.

Trade Deal Boosts Exports, Jobs

Sectors such as textiles, leather, jewellery, pharmaceuticals, smartphones, engineering goods and polished diamonds are expected to benefit, boosting India’s exports and expanding its services trade, currently valued at around $83 billion. The deal is also likely to enhance employment opportunities for Indian professionals in Europe. For the European Union, the biggest gain is access to India’s massive consumer base of over 1.4 billion people. Import duties on European cars will sharply reduce, expanding the premium automobile market, while reduced taxes on liquor and increased imports of machinery, chemicals and medical equipment are expected to drive EU exports.

Deal Reshapes Global Trade Balance

The bloc claims the deal could double its exports to India by 2032 and generate nearly 800,000 jobs. Strategically, the agreement diminishes US leverage, as India and the EU reduce their dependence on American markets amid tariff uncertainties. Together, India and the EU account for nearly 25 percent of global GDP and about 30 percent of the world’s population, making the pact a major shift in global trade dynamics. While implementation will take time, the deal clearly marks a setback for Washington’s tariff-driven trade strategy.