‘Mother of all deals’: EU and India sign free trade agreement

The Guardian - World NewsCenter-LeftEN 3 min read 100% complete by Hannah Ellis-Petersen in DelhiJanuary 27, 2026 at 10:33 AM

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The EU and India have finalized a comprehensive free trade agreement after nearly two decades of negotiations. The agreement, hailed as a landmark deal, aims to open India's market to the 27 EU nations, focusing on manufacturing and services. It is expected to double EU exports to India by 2032, eliminating or cutting tariffs on most traded goods and saving European companies billions in duties. India will reduce tariffs on European cars, benefiting automakers. Both sides emphasize the deal's potential to boost trade and economic growth, representing a significant portion of global commerce and creating a free trade zone of two billion people.

Key Entities & Roles

Key Player Opposition Context

UK 30% Volkswagen 30% BMW 30% Mercedes-Benz 30% Renault 30% International Monetary Fund 40% Delhi ×240% Narendra Modi ×260% European Commission 60% Ursula von der Leyen ×270% European Union ×790% India ×1090%

Keywords

free trade agreement 100% eu 90% india 90% trade 80% exports 70% tariffs 70% market access 60% manufacturing 50% services sector 50% economic growth 40%