India, EU Finalise Historic Trade Deal Covering 25 Per Cent Of Global GDP

India announced a Free Trade Agreement with the European Union on Tuesday (27 January), the Financial Express reported.

The landmark deal covers a market of 2 billion consumers across 27 nations, representing 25 per cent of world GDP and one-third of global trade.

"A big agreement was signed between the European Union and India yesterday. People are calling this the mother of all deals. This agreement will bring major opportunities for the public in India and Europe. This is a perfect example of a partnership between two major economies of the world…This agreement represents 25 per cent of the global GDP and one third of global trade," said Prime Minister Narendra Modi.

The Prime Minister assured that the manufacturing and service sectors would receive a massive boost from the agreement.

Trade Secretary Rajesh Agrawal confirmed: "It will be a balanced, forward-looking deal for better economic integration with the EU. The deal will propel trade and investment between both sides…Negotiations have been successfully concluded. The deal has been finalised."

A formal signing ceremony is expected later this year after legal vetting, with implementation projected within a year following ratification by the EU Parliament and Indian Cabinet approval.

Both Commerce Minister Piyush Goyal and European Commission President Ursula von der Leyen have termed it the "mother of all trade deals." The agreement gained momentum after Trump imposed a 50 per cent tariff on Indian goods.

However, the deal drew criticism from US Treasury Secretary Scott Bessent, who accused Europe of indirectly financing the Russia-Ukraine war.

"We have put 25 per cent tariffs on India for buying Russian oil. Guess what happened last week? The Europeans signed a trade deal with India. And just to be clear again, the Russian oil goes into India, the refined products come out, and the Europeans buy the refined products. They are financing the war against themselves," Bessent told ABC News.

European Council President Antonio Luis Santos da Costa and von der Leyen attended India's Republic Day celebrations as chief guests on Monday (26 January).

Please click here to add Swarajya as your preferred and trusted news source on Google

Also Read: Bengaluru: BMRCL Introduces Free Cycle Parking At Select Metro Stations To Encourage Cycling Among Commuters