India, EU conclude trade talks after two decades

India and the European Union (EU) have concluded negotiations on a long-pending free trade agreement after nearly two decades, clearing the way for a formal signing expected on Tuesday during EU leaders’ visit to New Delhi.

European Commission President Ursula von der Leyen and European Council President Antonio Costa were in New Delhi for the announcement at a summit that coincides with India’s 77th Republic Day celebrations and reflects a shift in global trade strategy amid rising protectionism.

The pact negotiators have described as the “mother of all deals” caps discussions that began in 2007 and stalled for years before resuming momentum in 2022.

India’s commerce secretary Rajesh Agrawal said the treaty’s text has been agreed and is now entering legal review and procedural clearances ahead of a formal signing expected before India’s fiscal year-end on 31 March.

The agreement addresses goods services and investment across a wide range of economic sectors. It calls for deep cuts in tariffs and expanded market access for exporters on both sides. European imports such as wine spirits oils and certain industrial goods will see lower duties while India will cut steep tariffs on cars and other products that have long limited EU access to its market.

Under the terms, India will reduce import levies on European cars from current highs around 70-110% to 40% with a gradual slide towards 10% on many categories over time though battery electric vehicles are excluded from initial cuts to protect India’s nascent EV industry, Reuters reported.

The deal will also likely ease tariffs on textiles chemicals and electronics boosting Indian exports to Europe and offering Indian manufacturers more predictable access to a $18 trillion market where trade reached roughly $136 billion in 2025.

Analysts said the pact could expand exports by tens of billions of dollars over the next decade and help India diversify away from heavy reliance on the US at a time when tariffs have surged since mid-2025.

The agreement has geopolitical as well as economic dimensions. EU officials have said forging closer ties with New Delhi helps Brussels hedge against global instability and reliance on both the US and China.

Alongside the trade pact, India and the EU are expected to sign a broad strategic partnership including a security and defense cooperation framework that envisages annual dialogues on maritime security cybersecurity and counterterrorism cooperation.

European trade commissioner Maroš Šefčovič told Euronews the deal reflects a push by the bloc to open India’s large protected market to European firms and diversify supply chains. “We are checking the latest documents we are exchanging the last numbers and I believe that we are very, very close,” he said in remarks as talks wrapped up.

Finalizing text is a major milestone but not the final one. The agreement still must be subject to legal scrubbing and approval by India’s cabinet as well as ratification by the European Parliament before it enters into force. That process could take many months into 2026, analysts said.