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India and the European Union have concluded negotiations on a landmark free trade agreement after nearly two decades of discussions. The deal, expected to be formally announced tomorrow, will undergo legal vetting before signing. It promises to reshape trade ties, reduce tariffs, and boost investments across key sectors.
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India and the European Union have successfully wrapped up negotiations on a historic free trade agreement, marking a decisive moment in global trade diplomacy. Commerce Secretary Rajesh Agrawal confirmed that the deal has been finalized and will be formally announced tomorrow at the India–EU Summit in New Delhi.
Key Highlights:
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The agreement is expected to create one of the largest free trade regions, covering nearly 2 billion consumers and a combined economic output of $27 trillion.
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Legal scrubbing of the text is currently underway, with both sides aiming to complete the process swiftly to enable formal signing later this year.
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The pact is designed to reduce or eliminate tariffs on up to 90 percent of goods traded between India and the EU, significantly lowering costs for businesses and consumers.
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Indian textile and garment exports are likely to gain a major boost, while the EU is expected to benefit from reduced tariffs on automobiles and machinery.
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Agriculture has been deliberately excluded from the agreement, reflecting strategic sensitivities on both sides.
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The deal is being hailed as the “mother of all trade deals” by EU leaders, given its scale and complexity, and is expected to strengthen India’s economic integration with Europe.
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Beyond trade, the summit is also expected to deliver a strategic defence framework and a mobility pact for Indian professionals, underscoring the broader scope of cooperation.
This agreement comes at a time when global trade dynamics are shifting, with India positioning itself as a key partner for Europe amid uncertainties in other regions. The conclusion of talks signals political readiness on both sides to deepen ties and unlock new opportunities for growth and collaboration.
Sources: Reuters, PTI, The Economic Times, Financial Express, India Briefing
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India–EU Agreement Concluded, Signing Awaits Final Scrub
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