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Trade: India and the EU conclude “the deal of all deals”

by AI | 27.Jan 2026 | Europe in brief AI

India and the European Union on Tuesday formalized the conclusion of an ambitious free trade agreement which, after twenty years of negotiations, will create “a free trade area of 2 billion people”.

Indian Prime Minister Narendra Modi poses for a photo with Commission President Ursula von der Leyen and European Council President António Costa before their meeting at Hyderabad House in New Delhi on January 27, 2026, where they are due to sign a broad trade pact concluded after twenty years of negotiations. (Photo: Sajjad HUSSAIN / AFP)

New Delhi – In an uncertain global geopolitical context, this pact is intended to allow both parties to better protect themselves from Chinese competition and from the effects of the tariff war launched by the United States.

In front of the press, Indian Prime Minister Narendra Modi, the President of the European Council Antonio Costa and his counterpart from the Commission Ursula von der Leyen, celebrated their success.

“This is the deal of all deals,” Mr. Modi rejoiced. “This treaty will offer many opportunities to the 1.4 billion Indians and the millions of inhabitants of the EU,” he added, “it is not just a trade agreement, it is also the path to shared prosperity.”

“Europe and India made history today,” Ms. von der Leyen added. “We have created a free trade area of 2 billion people that will benefit both parties.”

According to Brussels, Indian customs duties on vehicles “made in Europe” must fall from 110 to 10%, on wines from 150 to 20%, and those on pasta or chocolate, currently at 50%, will be abolished. (27 January 2026)