The European Union and India have reached a trade agreement, European Commission President Ursula von der Leyen and Indian Prime Minister Narendra Modi said today, quoted by world agencies, BTA reported.
“Europe and India are writing history today. We have concluded the biggest deal of all. We have created a free trade area with two billion people, with both sides benefiting“, von der Leyen wrote in “Ex“.
Narendra Modi also announced that the country had reached a free trade agreement with the EU. He said that India and the European Union had reached a free trade agreement with the aim of deepening their economic and strategic ties.
India and the EU have reached a free trade agreement. Prime Minister Narendra Modi said on Tuesday that India and the European Union have reached a free trade agreement to deepen their economic and strategic relationship.
The agreement was finalized after nearly two decades of negotiations.
“This agreement will bring great opportunities to the people of India and Europe. It accounts for 25% of the world's gross domestic product and a third of world trade,“ Modi said.
The deal comes as Washington imposes steep tariffs on both India and the EU, disrupting established trade flows and prompting major economies to seek alternative partnerships, the AP noted.
India has stepped up efforts to diversify its export markets as part of a broader strategy to offset the impact of higher U.S. tariffs. The tariffs include a 25% surcharge on Indian goods for its continued purchases of cheap Russian oil, bringing the total tariffs imposed by the United States on its ally to 50%
The deal gives the EU expanded access to one of the world's fastest-growing major economies, helping European exporters and investors reduce their dependence on more volatile markets.
Two-way trade between India and the EU stood at $136.5 billion in 2024-2025. The two countries hope to increase the amount to about $200 billion by 2030, Indian Commerce Ministry officials said.