India, EU ‘make history’ as they seal trade pact amid US tariff pressure

South China Morning PostCenter-RightEN 1 min read 100% complete by Biman MukherjiJanuary 27, 2026 at 12:10 PM

AI Summary

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India and the European Union have announced a free trade agreement, dubbed the "mother of all deals" by Indian Prime Minister Narendra Modi. The pact aims to strengthen economic ties between the EU's 27 member states and India, creating one of the world's largest trading blocs. Once implemented, the deal is expected to cut or eliminate tariffs on almost 97% of European exports to India, saving up to €4 billion (US$4.75 billion) a year in duties. The agreement represents about 25% of global GDP and one-third of global trade. It marks a historic step in bilateral ties between the EU and India, with European Commission President Ursula von der Leyen calling it a "historic moment" for the two parties.

Key Entities & Roles

Key Player Opposition Context

European Council 30% Antonio Costa 30% European Commission 40% Ursula von der Leyen 60% United States 60% Narendra Modi ×380% India ×690% European Union ×490%

Keywords

free trade agreement 100% european union 90% india 90% trade pact 80% economic ties 70% global trade 60% tariffs 60% trading bloc 50% us protectionism 50% exports 40%