On this Special Report, Akshita Nandagopal and Geeta Mohan break down the historic India-EU Free Trade Agreement signed in New Delhi on January 27, 2026. Described by leaders as the ‘mother of all deals,’ the pact aims to double bilateral trade by 2032, covering a region representing 25% of the global economy. European Commission Vice President Kaja Kallas emphasizes that the agreement creates a market of 2 billion people. Under the deal, the EU offers duty cuts on 99% of tariff lines, benefiting Indian textiles, footwear, and marine products. Conversely, India will reduce tariffs on 97% of EU goods, including premium cars, wines, and pharmaceuticals. Beyond trade, the agreement establishes a new security and defence framework and an innovation hub for next-generation technology. The report explores the strategic significance of this partnership amidst global market volatility and US tariff pressures. Implementation involves a five-step process, with full phase-in of new tariffs expected to continue through 2027.
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