India, EU Economies to Get Significant Boost With Trade Deal Today
Together, India and the EU account for nearly one-fifth of global trade and around 25 per cent of the world’s population
New Delhi: India and the European Union will on Tuesday announce what has been described as the “Mother of all deals,” after long-running negotiations were successfully concluded.
Together, India and the EU account for nearly one-fifth of global trade and around 25 per cent of the world’s population, underscoring the growing economic and strategic importance of the partnership.
The EU and India are close partners working to promote economic prosperity, a rules-based international order and sustainable development, with trade and investment forming the core pillars of the relationship.
At the EU-India summit scheduled for Tuesday, leaders are expected to adopt a joint comprehensive strategic agenda and discuss trade issues in the context of the free trade agreement (FTA) negotiations. The talks were originally launched in 2007, relaunched in 2022 and concluded on Monday.
European Commission President Ursula von der Leyen said India and Europe had chosen strategic partnership, dialogue and openness, adding that the agreement demonstrates that cooperation is possible in a fractured world.
European Council President Antonio Costa said India is a crucial partner for the EU, noting that both sides share the responsibility to protect the rules-based international order.
In trade in goods, the EU is India’s second-largest trading partner after China, accounting for 11.5 per cent of India’s total goods trade. In 2024, EU-India trade in goods was valued at over €120 billion.
Over the past decade, bilateral trade in goods has doubled, with EU imports from India rising by 140 per cent and EU exports to India growing by 58 per cent.
Trade in services has also expanded rapidly. In 2024, EU-India trade in services exceeded €66 billion, with growth of more than 240 per cent over the last decade.
Foreign direct investment further highlights the depth of ties, with EU investments in India valued at over €132 billion in 2024, making the EU the country’s largest investor.
The FTA aims to reduce trade barriers, boost exports and expand services trade, while parallel negotiations on investment protection and geographical indications continue.