India-EU Trade Deal: "Mother of All Deals" Expected Tomorrow After Two Decades

• India and the European Union are set to announce a free trade agreement (FTA) at the India–EU Summit in New Delhi on January 27, after nearly two decades of stalled negotiations.
• The deal, dubbed the "mother of all deals" by EU leaders, signifies a major shift in India's trade strategy and aims to reshape economic ties with its largest goods trading partner.
• Key elements include India's offer to significantly cut import duties on European cars (from 70-110% to potentially 40% initially, then 10%) and India seeking better market access for labor-intensive sectors like textiles, garments, and gems.
• The EU aims for deeper access to India's growing economy, with phased tariff reductions on wines, spirits, machinery, and chemicals, alongside clearer rules on services and investment protection.
• Unresolved issues include India's resistance to eliminating tariffs on over 95% of goods, the impact of the EU's Carbon Border Adjustment Mechanism (CBAM), and non-tariff barriers for Indian exporters.

Why It Matters: India and the EU are on the verge of a landmark trade deal, promising significant economic shifts for both sides.