Historic Trade Agreement between India and EU on the Horizon

Mon Feb 02 2026 16:19:54 GMT+0200 (Eastern European Standard Time)

India and the European Union are finalizing a significant trade agreement after years of negotiations. This deal is expected to enhance economic ties and send a strong message against protectionism.

After nearly 20 years of discussions, India and the EU are poised to announce a landmark trade deal. With key figures like European Commission President Ursula von der Leyen and Indian Prime Minister Narendra Modi involved, the agreement aims to bolster economic relationships amid rising global tensions. The deal could significantly benefit both parties by expanding market access and promoting cooperation amid pressures from other global players.

The European Union and India are set to announce a landmark trade deal after nearly two decades of on-off talks, as both sides aim to deepen ties amid tensions with the US.

India's Commerce Secretary Rajesh Agarwal stated on Monday that negotiations had been wrapped up and the deal finalized.

European Commission President Ursula von der Leyen and European Council President António Luís Santos da Costa are currently in Delhi, where the announcement is expected.

Both India and the EU seek to strengthen strategic and trade relations as they face economic pressures from the US. Delhi is also dealing with 50% tariffs imposed by the previous US administration, which complicates ongoing trade negotiations.

This deal is important politically, highlighting a preference for trade agreements over tariffs during a time of rising protectionism, according to Costa. Von der Leyen echoed this sentiment, emphasizing a commitment to shaping a new global order collaboratively.

Following a prominent presence at India’s Republic Day celebrations, the EU leaders are scheduled to meet with Modi and hold a bilateral summit before the official announcement of the trade deal.

The agreement is expected to ease market access for Indian exports and facilitate European investments and goods entering India, thereby enhancing economic collaboration. Modi remarked on the significance of this partnership, noting that it represents a substantial portion of global GDP and trade.

The trade negotiations, which began in 2007, faced multiple roadblocks but were revitalized in July 2022. The deal aims to address key issues around market access in sectors such as automobiles and agriculture.

This new agreement, dubbed by leaders as the 'mother of all trade deals,' reflects increasing urgency for India and the EU to secure alternate export markets amidst global trade tensions.