India-EU FTA: Why is it called the ‘mother of all deals’? Explained

TOI Business Desk / TIMESOFINDIA.COM / Updated: Jan 27, 2026, 13:29 IST

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India-EU FTA: Why is it called the ‘mother of all deals’? Explained

India-EU FTA: After almost two decades of negotiations, India and the European Union finally concluded the Free Trade Agreement on Tuesday. The deal has often been touted as the 'mother of all deals' by both the sides, due to its economic and strategic importance.Hailing the agreement, EU Commission President Ursula von der Leyen said, "Europe and India are making history today. We have concluded the mother of all deals. We have created a free trade zone of two billion people, with both sides set to benefit. This is only the beginning. We will grow our strategic relationship to be even stronger."Ahead of the conclusion, PM Modi also said that the, FTA, the “mother of all deals,” will significantly boost Indian sectors such as textiles, gems and jewellery, and leather goods. Speaking in New Delhi ahead of talks with EU leaders, he added that the agreement would create opportunities for India’s 1.4 billion people as well as millions across the EU.

Here's why India-EU trade deal is the 'Mother of all deals':

The Free Trade Agreement has been dubbed the ‘mother of all deals’ due to the growing economic and strategic partnership between the two nations. At present, India and the EU together account for nearly one-fifth of global trade and about 25% of the world’s population.
The bloc expects the deal to double its shipments to India by 2032.
According to the deal, tariffs on 96.9% of EU's exports to India will either be reduced or removed. The FTA removes tariffs on fruit juices and processed foods. Furthermore, duties on European spirits, which currently face charges of up to 150%, will be slashed to a flat 40%, providing a major lift to the premium liquor sector.
India will get to enjoy cheaper beer, cars and many other food items.
The deal will largely eliminate tariffs of up to 44% on machinery, 22% on chemicals and 11% on pharmaceuticals.

Negotiations for the free trade agreement were relaunched in June 2022, alongside parallel talks on investment protection and geographical indications. The trade discussions aim to remove barriers, boost exports and open up services, reinforcing the economic foundation of the India-EU partnership.

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The TOI Business Desk is a vigilant and dedicated team of journalists committed to delivering the latest and most relevant business news from around the world to readers of The Times of India. The primary focus of the TOI Business Desk is to keep a watchful eye on the global business landscape, covering a wide spectrum of industries, markets, economic trends, in-depth analysis, exclusive reports and breaking stories that impact businesses and economies. With a mission to provide valuable insights and updates, the desk ensures that TOI readers are well-informed about the ever-changing and dynamic world of commerce and can navigate the complexities of the business world.

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