India-EU FTA: The 'Mother of All Deals' and Its Impact on Trade

• India and the EU are set to sign a landmark Free Trade Agreement (FTA) on January 27, dubbed the "mother of all deals."
• The EU will gain easier access for wines, spirits, and automobiles in India, while India will expand exports of textiles, leather, and marine products.
• Negotiations, initially launched in 2007 as BTIA, stalled in 2013 over disagreements but relaunched in 2022 with renewed political will.
• India's exports to the EU totaled $75.85 billion, and imports reached $60.68 billion in 2024-25, making the EU India's largest trading partner.
• The deal could offer India a carve-out from the EU’s Carbon Border Adjustment Mechanism (CBAM), which imposes a 20-35% tax on select imports from January 2026.

Why It Matters: The India-EU FTA promises significant economic gains for both sides, boosting trade and investment across key sectors.