The European Union and India have taken a decisive step toward one another by signing a unique free trade agreement. After 20 years of difficult negotiations, the two sides agreed to reduce or abolish tariffs on the vast majority of goods.
The EU will be able to export 97% of all its goods to India without customs duties. In other words, almost all European products — from food to industrial goods — will no longer be taxed on entry into India, or these taxes will be significantly reduced. Indian companies, in turn, will be able to sell goods to the EU market that account for 99% of the value of all Indian exports to Europe, also without tariffs or with reduced duties.
Despite restrictions remaining on some items, especially cars, the two sides agreed on gradual liberalization. The deal is not only economic but also strategic. It strengthens the partnership between the EU and India, creating a durable platform for technological, energy and migration cooperation.
The agreement also includes new measures to develop green energy and the mobility of skilled professionals. The deal looks like a carefully considered move by the EU in favor of a multipolar world and new economic routes.
