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EU–India conclude historic "Mother of All Deals": key facts and implications The European Union and India have formally concluded negotiations on a free trade agreement (FTA). The agreement brings together the world’s second and fourth largest economies and creates a free trade zone covering nearly 2 billion people. Trade and economic impact - Current EU–India trade exceeds €180 billion annually, supporting around 800,000 EU jobs. - The agreement is expected to double EU goods exports to India by 2032. - Tariffs will be eliminated or reduced on 96.6% of EU goods exports, saving European exporters an estimated €4 billion per year in duties. This is the most extensive trade opening India has ever granted to a partner. Market access for EU industry and services - Car tariffs will be reduced from 110% to as low as 10%, with car parts fully liberalised after 5–10 years. - High tariffs on machinery (up to 44%), chemicals (22%) and pharmaceuticals (11%) will be largely eliminated. - The agreement grants EU firms privileged access to India’s services market, including financial services and maritime transport. - Strong protections are included for intellectual property, covering copyrights, trademarks, designs, trade secrets and plant varieties. - A dedicated SME chapter introduces contact points, improved transparency and reduced regulatory barriers, helping smaller companies make practical use of the agreement. - Average agri-food tariffs of over 36% will be reduced or eliminated. - Wine tariffs fall from 150% to 75% at entry into force and as low as 20% over time; olive oil tariffs drop from 45% to zero within five years. - Sensitive EU sectors (including beef, poultry, rice and sugar) are excluded, and EU food safety standards remain fully intact. - Negotiations on a separate Geographical Indications agreement are ongoing. Sustainability and climate A dedicated trade and sustainable development chapter covers climate action, labour rights, environmental protection and women’s empowerment. An EU–India climate cooperation platform is planned for launch in 2026, alongside up to €500 million in EU support for India’s green transition over the next two years. Next steps Legal revision, translation and EU institutional approval processes are now underway. The agreement will require approval by the Council and consent of the European Parliament before entry into force, alongside ratification by India. #EUIndia #FreeTradeAgreement #TradePolicy #InternationalTrade #GlobalTrade #EUTrade #IndiaEconomy #EconomicPartnership #RulesBasedTrade #SMEs #AgriFood #Sustainability #ClimateAction #Geopolitics