Reuters. India and the European Union have finalised a long-pending landmark trade deal, both sides said on Tuesday (January 27) as leaders hailed it as the largest trade deal in India's history that will create a market of 2 billion people.
Speaking at a joint news conference with European Council President Antonio Costa and Commission President Ursula von der Leyen, Indian Prime Minister Narendra Modi said the agreement "will help forge new innovation partnerships and will strengthen supply chains at a global level."
The deal is expected to double EU exports to India by 2032 by eliminating or reducing tariffs in 96.6% of traded goods by value, and will lead to savings of 4 billion euros ($4.75 billion) in duties for European companies, the EU said.
The EU will cut tariffs on 99.5% goods traded over seven years, with tariffs to be cut to zero on Indian marine goods, leather and textile products, chemicals, rubber, base metals and gems and jewellery, India's trade ministry said in a statement.
"We delivered the mother of all deals. We are creating a market of 2 billion people," von der Leyen said. "This is the tale of two giants, the world's second and fourth largest economies, two giants who choose partnership in a true win-win fashion."
The agreement comes days after the EU signed a pivotal pact with the South American bloc Mercosur, following deals last year with Indonesia, Mexico and Switzerland. During the same period, New Delhi finalised pacts with Britain, New Zealand and Oman.
The spate of deals underscores global efforts to hedge against trade with the United States as President Donald Trump's bid to take over Greenland and tariff threats on European nations test longstanding alliances among Western nations.
