India-EU FTA Nears Historic Deal: 'Mother of All Deals' to Reshape Trade

• India and the European Union are on the verge of finalizing a historic Free Trade Agreement (FTA) after nearly 20 years of negotiations, with 20 out of 24 chapters already closed.
• Dubbed the 'Mother of All Deals' by European Commission President Ursula von der Leyen, the agreement covers a combined market of nearly 2 billion people and a quarter of the world's GDP.
• The comprehensive deal extends beyond tariff reductions to include cooperation on services, technical standards, digital rules, and investment protection, aiming for a stable trade environment.
• For India, the FTA offers increased competitiveness for labor-intensive sectors (textiles, apparel, marine products) and high-value sectors (pharmaceuticals, chemicals) through tariff elimination and regulatory alignment.
• The EU seeks to diversify supply chains away from China, gaining market access for wine, spirits, luxury cars, and industrial goods, while increasing investment in India's green energy and digital infrastructure.

Why It Matters: The impending India-EU FTA is a game-changer, promising to integrate India into global supply chains and boost economic growth.