India-EU Mother Of Deals: What Does It Mean?

It is already known that India has been in active talks with European Union regarding a new free trade agreement that is likely to be struck soon. In this context, something interesting is happening now and let us have a look into the same.

India and the European Union have reached a breakthrough Free Trade Agreement that leaders on both sides are calling the “Mother of All Deals”, marking the end of nearly two decades of negotiations.

According to details shared by EU officials and reported by international media, the pact will see tariffs reduced or completely eliminated on around 97 percent of European exports to India, making it one of the most ambitious trade agreements India has ever signed.

A key highlight of the deal is the automobile sector. Import duties on European cars, which currently go as high as 110 percent, will be gradually reduced to 10 percent. This reduction will be implemented in phases and linked to fixed quotas, allowing India’s domestic auto industry time to adjust while opening the market to high end European manufacturers.

The agreement also brings major changes to food and beverage imports. Duties on wine will be brought down to about 20 percent, making European wines significantly more affordable for Indian consumers. Tariffs on products such as pasta, chocolates and other processed foods will be completely removed, giving European food brands easier access to the Indian market.

Beyond goods, the deal includes cooperation in services, sustainability and regulatory standards. Once ratified, the agreement is expected to sharply boost India EU trade and deepen long term economic ties.