as both sides aim to deepen ties amid tensions with the US. "We did it, we delivered the mother of all deals," European Commission President Ursula von der Leyen said at a media briefing in Delhi. Indian Prime Minister Narendra Modi called the pact "historic". It will allow free trade of goods between the bloc of 27 European states and the world's most populous country, which together make up nearly 25% of global gross domestic product and a market of two billion people. The deal will see a number of huge tariff cuts across a range of goods and services, and a joint security partnership.

European Commission President Ursula von der Leyen and EU Council President António Costa met Modi in Delhi for a bilateral summit. The proposed agreement would phase out tariffs on most EU exports to India, including chemicals, machinery, electrical equipment, aircraft, and spacecraft. Notably, motor vehicle duties—some up to 110%—would drop to 10% under a quota of 250,000 vehicles, a quota six times larger than India granted the UK last July. India would likewise cut tariffs on EU wine, beer, and olive oil. Brussels expects the deal to boost investment, improve market access, and deepen supply-chain integration.

Delhi stated that nearly all of India’s exports would gain preferential access to the EU, with reduced or eliminated tariffs on textiles, leather, marine products, handicrafts, and gems/jewellery. While commodities like tea, coffee, spices, and processed foods would benefit, India has safeguarded sensitive sectors (dairy, cereals, poultry, soy meal, certain fruits/vegetables) to balance export growth with domestic priorities.

Additionally, both sides agreed on a mobility framework easing short-term professional travel between India and the EU. Modi called it India’s biggest free trade agreement, highlighting benefits for Indian farmers, small businesses, manufacturing, services, and innovative partnerships. The deal’s significance arises amid broader economic and geopolitical tensions with the US, which has imposed 50% tariffs on India and is negotiating separately with the EU. Leaders framed the agreement as a win-win, underscoring partnership over tariff-based competition. (BBC)