Business

Indian Prime Minister Narendra Modi announced on Tuesday that India and the European Union have completed a significant trade deal. This agreement comes after nearly 20 years of negotiations, as both parties aim to strengthen their relationship amid uncertain ties with the U.S. The deal will allow India, the world's most populous country, to open its extensive market to free trade with the EU, which consists of 27 member nations and is its largest trading partner. Modi stated, “Yesterday, a big agreement was signed between the European Union and India. People around the world are calling this the mother of all deals. This agreement will bring major opportunities for the 1.4 billion people of India and the millions of people in Europe.” Later on Tuesday, Modi and European Commission President Ursula von der Leyen are expected to share more details about the deal during an India-EU summit in New Delhi. In the fiscal year ending March 2025, trade between India and the EU reached $136.5 billion. This agreement follows the EU's recent signing of an important pact with the South American group Mercosur, as well as agreements with Indonesia, Mexico, and Switzerland last year. Similarly, India has also secured trade deals with Britain, New Zealand, and Oman during this time. These recent agreements highlight global efforts to navigate uncertainties with the United States, as President Donald Trump's attempts to acquire Greenland and his tariff threats against European nations strain long-standing alliances. Trump has implemented a 50% tariff on Indian goods, and a trade deal between India and the U.S. fell through last year due to communication issues between the two governments.