India-EU Seal Historic Free Trade Deal: What It Means for Global Trade

• India and the European Union have signed a Free Trade Agreement (FTA) after decades of negotiations, allowing Indian goods tax-free or low-tax access to 27 European countries.
• The deal creates a common market of two billion people, representing approximately 25% of the world's total GDP, according to European Commission President Ursula von der Leyen.
• The agreement comes amidst global trade tensions, with the US imposing high tariffs on Indian goods, pushing both India and Europe to seek alternative markets.
• Negotiations began in 2007 but stalled in 2013, with India consistently protecting its agriculture sector from foreign market entry.
• Current India-EU trade stands at $137.4 billion, projected to exceed $200 billion post-agreement, boosting Indian textiles, gems, jewelry, and IT services.

Why It Matters: India and the EU finalize a landmark FTA, creating a massive market and reducing reliance on other major economies.