India and the European Union on Tuesday announced a long-awaited free trade agreement that Prime Minister Narendra Modi described as the “mother of all deals”, as both sides moved to strengthen economic ties in a global trade order unsettled by rising US protectionism.
The pact, once implemented, is expected to create one of the world’s largest trading blocs and deepen commercial links between the EU’s 27 member states and the world’s most populous country.
The deal would cut or eliminate tariffs on almost 97 per cent of European exports to India, saving up to €4 billion (US$4.75 billion) a year in duties, the bloc said.
“People around the world are calling this the mother of all deals,” Modi said. “This deal will bring many opportunities for India’s 1.4 billion people and many millions in the EU.”
The agreement “represents about 25 per cent of global GDP and one-third of global trade”, Modi added.
European Commission President Ursula von der Leyen said the agreement marked a historic step in bilateral ties.
“Europe and India are making history today,” she said in a statement, a day after she and European Council President Antonio Costa were guests of honour at India’s Republic Day parade.
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