India And EU Finalise Historic Trade Agreement After Years Of Talks

The European Union and India are preparing to announce a long-awaited trade agreement, bringing to a close nearly 20 years of intermittent negotiations. The deal, now finalised according to India’s Commerce Secretary Rajesh Agarwal, comes as both sides look to strengthen economic and strategic ties in response to growing global trade tensions, particularly with the United States.

European Commission President Ursula von der Leyen and European Council President António Luís Santos da Costa are currently in Delhi, where the agreement is expected to be unveiled following high-level meetings with Indian leaders.

The broader geopolitical climate has shaped the momentum behind the deal. India continues to face steep US tariffs imposed last year, while the EU has also navigated recent trade frictions with Washington. Against this backdrop, Costa said the agreement sends an “important political message to the world that India and the EU believe more in trade agreements than in tariffs,” adding that it comes at a time when protectionism is increasing globally. Von der Leyen echoed this sentiment, saying Europe and India are “committed to working together to shape a new global order.”

Once formally signed likely later this year after approval by EU institutions the agreement is expected to significantly boost market access for Indian exports while easing the entry of European goods and investments into India.

Indian Prime Minister Narendra Modi described the pact as a major milestone, saying: “This is a perfect example of a partnership between two major economies of the world… This agreement represents 25% of the global GDP and one-third of global trade.” Analysts are now closely watching the fine print, particularly on sensitive areas such as automobiles, agriculture and carbon-related tariffs, as both sides position the deal as a cornerstone of future global trade cooperation.