• India and the EU finalize a landmark trade deal after nearly two decades of negotiations.
• The agreement aims to enhance trade access and reduce tariffs on numerous goods.
• Both sides aim to strengthen ties in light of tensions stemming from US trade policies.
• The deal is projected to benefit approximately 1.4 billion Indians and millions of Europeans.
• Implementation is expected within a year, following a legal vetting process.

India and the European Union have finalized a landmark trade deal, described as the "mother of all deals," after nearly two decades of negotiations. Prime Minister Narendra Modi announced the significant agreement, highlighting its potential to open the vast Indian market to EU goods and services, which will benefit both economies. He noted the deal is designed to create various opportunities for the 1.4 billion people of India and millions across Europe, illustrating the economic and strategic importance of this partnership at a time when global trade dynamics are in flux, according to BBC and Channel News Asia.

The trade deal is set to significantly reduce tariffs on 96.6% of EU goods exported to India, potentially yielding up to €4 billion in annual savings for European products. Notably, products such as European cars, beers, and various food items are expected to become cheaper for Indian consumers. The agreement also involves the removal of tariffs on a wide range of goods, including fruit juices, olive oil, and medical equipment. This comprehensive approach aims to stimulate trade between the two regions, which together account for about 25% of global GDP, according to India Times and Channel News Asia.

Leaders from both sides have emphasized the deal's importance amid increasing protectionist measures and ongoing tensions with the United States. President Trump imposed a 50% tariff on Indian goods last year, prompting India and the EU to solidify their trade relationship. This agreement follows a series of recent trade pacts between India and other nations, such as the UK and New Zealand, reflecting a strategic pivot towards strengthening global economic ties amidst unpredictable US policies, according to BBC and India Times.

While the final text of the agreement is expected to undergo legal vetting over the next several months, officials express optimism for implementation within a year. Prime Minister Modi remarked that the agreement would demonstrate a commitment to trade over tariffs and facilitate increased market access for exporters in both regions. This cooperative move is seen as not only economically advantageous but also as a step towards enhancing political ties between these major global economies, according to Channel News Asia and India Times.