India-EU Forge Ambitious Trade, Security Deals; Navigate Trump Tariffs

• India and the EU announced a Free Trade Agreement (FTA), a security and defense partnership, and a mobility agreement, marking a new era in bilateral relations.
• The deals are significant due to the economic and military size of both entities, signaling growing proximity and a strategic alignment.
• The FTA aims to boost trade by lowering tariffs, with India gaining access for textiles, seafood, and chemicals, while the EU benefits from easier entry for machinery, automobiles, and medical devices.
• Analysts suggest the partnership acts as a 'shock absorber' against Trump's tariffs, allowing both India and the EU to redirect exports and strengthen their negotiating positions.
• The partnership extends to defense, with European powers considering manufacturing hubs in India, supporting India's 'Make in India' initiative and securing European supply chains.

Why It Matters: India and the EU solidify a comprehensive partnership, boosting trade and defense while navigating global economic shifts.