Mother Of All Trades: Big Takeaways From India-EU’s Historic Free Trade Agreement

India and the European Union today finalised a historic Free Trade Agreement (FTA), dubbed the “Mother of All Deals”, after nearly two decades of negotiations. The pact slashes tariffs on most goods traded between India and the EU, opens markets for a wide range of products and services, and deepens strategic ties between two of the world’s largest economies. This comprehensive agreement is seen as a major boost for trade, investment, jobs and consumer choice.

Key Takeaways: What Changes Now

Historic FTA Sealed: The India-EU Free Trade Agreement has been signed, aiming to cut or eliminate tariffs on a vast majority of goods and deepen strategic cooperation between India and the EU.

Massive Tariff Cuts: India will reduce tariffs on nearly 97% of EU goods imported into the country, including significant cuts on cars, wines, olive oils and machinery, saving up to €4 billion a year in duties.

Luxury Cars Set to Get Cheaper: Import duties on European cars will fall from very high levels (up to 110%) down to as low as 40%, and eventually to around 10%, making brands like Mercedes-Benz, BMW and Volkswagen more affordable for Indian buyers.

Cheaper Consumer Goods: European products including wines, spirits, olive oil and processed foods are expected to become more affordable in India as tariffs are lowered or removed.

Export Boost for India: Indian sectors such as textiles, seafood, leather, spices and jewellery will see improved access to the EU market, with tariff elimination on key exports.

Services & Investment Gains: The FTA includes commitments on services, digital trade, investment and regulatory cooperation, paving the way for expanded business opportunities.

Strategic Partnership Deepens: Beyond trade, the agreement reinforces ties on security, sustainability and global cooperation, reflecting broader geopolitical alignment.

Why It Matters

• Consumers will benefit from lower prices on European imports such as cars and wines.
• Businesses get new markets, especially Indian exporters to the EU.
• Investors see clarity with enhanced market access in services and manufacturing.
• Global trade influence strengthens, as India and the EU together represent a large share of global GDP and trade.
• This landmark deal, once ratified by both sides, could be implemented within the year, reshaping economic relations and offering tangible benefits for consumers and industries alike.