India-EU Finalize Historic Trade Deal

India and the European Union have successfully concluded negotiations for a historic free trade agreement (FTA), dubbed the 'mother of all deals,' after 18 years of on-and-off talks. The agreement, announced by Ursula von der Leyen and Narendra Modi, creates a market of two billion people, representing almost a quarter of global GDP. Key provisions include India's commitment to sharply lower import tariffs on European Union cars from up to 110% to 40%, with further reductions to 10% over time, benefiting European automakers such as Volkswagen, Mercedes-Benz Group, and BMW. In return, India's labor-intensive sectors like textiles, apparel, leather goods, and gems and jewelry will gain duty-free access to the European Union market. The deal also includes a new Security and Defence Partnership, aiming to enhance cooperation in maritime security, counterterrorism, and cyber defense, and facilitate Indian firms' participation in the European Union's SAFE program. The agreement comes amidst global trade disruptions and US tariff policies, with US Treasury Secretary Scott Bessent criticizing the European Union for prioritizing trade over supporting Ukraine, while US Trade Representative Jamieson Greer acknowledged India's advantageous position in the deal. The FTA is expected to significantly boost bilateral trade and investment, diversify export markets, and strengthen strategic ties between India and the European Union.