India and EU Seal Historic “Mother of All Deals” Free Trade Agreement.
The long-awaited India-EU Free Trade Agreement has finally crossed the finish line, sparking a massive rally in Indian financial markets on
India and the EU seal a historic trade pact, dubbed the "mother of all deals," to create a market of two billion people.
The long-awaited India-EU Free Trade Agreement has finally crossed the finish line, sparking a massive rally in Indian financial markets on Tuesday, January 27, 2026. This landmark pact is set to be a game-changer, with projections suggesting it will double EU exports to India by 2032 and add billions potentially $75 billion to India’s export revenue.
Beyond just numbers, the agreement is a strategic hedge against global trade wars, focusing on massive foreign direct investment (FDI) and job creation in high-growth sectors. Key beneficiaries include technology (IT/ITeS), healthcare (pharmaceuticals and medical devices), and manufacturing sectors such as textiles and aerospace. For India, the deal provides preferential access for 99% of its exports to the EU market, while for the EU, it cuts prohibitive tariffs on cars, machinery, and agri-food products.
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