India-EU Trade Deal Nears Finish Line: The 'Mother of All Deals' Explained

• India and the European Union are close to finalizing a historic free trade agreement after nearly 20 years of negotiations, with European Commission President Ursula von der Leyen calling it the "mother of all deals."
• The proposed pact, unmatched in scale, aims to create a predictable environment for goods, services, investment, standards, and emerging-technology cooperation, covering a combined market of nearly two billion people.
• Negotiations, which stalled in 2013, were relaunched in 2022 with renewed political commitment, driven by supply chain disruptions and global uncertainty, leading to 20 of 24 chapters already being closed.
• India stands to gain significantly from the agreement, especially in labour-intensive sectors like textiles and leather, and high-value sectors such as pharmaceuticals, benefiting from reduced tariffs and clearer regulatory pathways.
• The EU seeks to diversify away from China, gaining access to India's large market, with potential tariff reductions on wines, spirits, and automobiles, and increased investment in green hydrogen and digital infrastructure.

Why It Matters: India and the EU are on the verge of a landmark trade agreement, promising significant economic gains and strategic stability.