What is ''Mother of All Deals’’? India-EU Free Trade Agreement

India-EU Free Trade Agreement: Indiaan and European Union have officially signed a comprehensive Free Trade Agreement after 18 years of intense debate, deliberations and periodic pauses. The announcement was made at the 16th India-EU Summit by Prime Minister Narendra Modi and European Commission President Ursula von der Leyen during the visit of European leaders to India.

It is often referred to as ‘’Mother of All Deals’’ by trade analysts and policymakers this deal represents one of the most ambitious and expansive economic partnerships in the 21st century. By bridging the world’s largest democracy with the world’s largest single market, redefineing  the geopolitical and economic landscape of the global economy. 

Why It’s Called the "Mother of All Deals"

India and the EU Free Trade Agreement is a historic milestone for global Economy, the scale of this agreement is unprecedented. The EU is one of India’s largest trading partners fueling 25% of the global economy and housing nearlyone-third of the world's population, which creates a massive foundation for consumer demand and innovation, While the EU remains a trade heavyweight with $9.8 trillion in combined goods and services imports, India is rapidly scaling its global footprint with $750 billion in goods imports, signaling its rise as a critical destination for international trade and business.

Together, they drive $11 trillion of the world’s $33 trillion trade flow; even at a current share of 11-12%, their demographic scale and booming manufacturinh hub.The "Mother of All Deals" moniker stems from the sheer volume of trade it covers encompassing goods, services, investment protection, and digital trade as well as the removal of long-standing barriers that have historically stifled bilateral growth.

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The EU and India concluded negotiations today for an ambitious, comprehensive free trade agreement.

This is the largest trade agreement that both the EU and India have ever concluded.

More: https://t.co/obud5ija8a pic.twitter.com/VfP4s0jlyt

— European Commission (@EU_Commission) January 27, 2026

Key Elements of the Agreement

The finalised FTA is built on several core pillars designed to create a "win-win" scenario for both EU and India: 

• Tariffs Elimination: The deal removes or significantly reduces customs duties on over 90% of tariff lines which gives Indian textiles, leather, and agricultural products easier access to European markets, while European machinery, transport equipment, and specialty chemicals enter India more competitively.

  • The deal touches approximately 2 Billion billion people with both sides set to gain economically.

  • The EU and India present trade over €180 billion worth of goods and services per year. This deal is expected to double EU goods exports to India by 2032 by eliminating or reducing tariffs in value of 96.6% of EU goods exports to India. Overall, the tariff reductions will save around €4 billion per year in duties on European products.

• Service Sector Integration: For India, the "Mother of All Deals" is a major win for its services sector, facilitates easier movement for Indian professionals like IT, engineering, and healthcare to work in the EU under "Mode 4" provisions, while the EU gains better access to India’s financial, telecommunications, and maritime sectors.

• Investment Protection: India will grant the EU tariff reductions that none of its other trading partners have received. A dedicated Investment Protection Agreement (IPA) provides a stable and predictable legal framework for European investors in India, encouraging a surge in Foreign Direct Investment (FDI) for infrastructure and green energy projects.

• Reducing Agri-Food Tariffs: the agreement reduces prohibitive traffic over 36%average on EU exports of agri-food products, which opens a massive market to farmers where sensitive agricultural sectors will be fully protected as products like beef, Chicken meat, rice etc,.

  • the EU and India are currently negotiating a separate agreement on Geographical Indications (GIs), which will help traditional iconic EU farming products sell more in India, by removing unfair competition in the form of imitations.

• Enhance Sustainability and Labor Standards: The agreement has a dedicated trade and sustainable development chapter, which enhances environmental protection and addresses climate change, protects workers' rights, supports women's empowerment, provides for a platform for dialogue and cooperation on trade related environmental and climate issues and ensures effective implementation.

The India-EU Free Trade Agreement marks a landmark shift in global trade, the largest such deal ever concluded by either side. It will strengthen economic and political ties between the world's second and fourth largest economies, at a time of rising geopolitical tensions and global economic challenges, highlighting their joint commitment to economic openness and rules-based trade. By balancing aggressive tariff liberalization with robust protections for labor, climate, and investment, this "Mother of All Deals" creates a blueprint for high-standard partnerships between developing and developed economies. 

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