India’s Modi Declares ’Mother of All Deals’ as Historic EU Free Trade Agreement Finalized
India just inked what its Prime Minister calls the 'mother of all deals'—a landmark free trade pact with the European Union that's set to reshape global commerce. Forget incremental tariffs; this is a full-scale economic bridge between two of the world's largest markets.
The Digital Silk Road
Look past the traditional goods. The real story is in the digital annexes. The agreement carves out new data flow corridors and e-commerce frameworks, creating a regulatory runway for tech giants and startups alike. It’s a silent nod to the future of borderless digital services.
Finance Gets a Reality Check
While bankers toast over reduced tariffs on financial services, the underlying message is stark: adapt or be sidelined. The pact accelerates the integration of payment systems and fintech standards, pushing legacy institutions toward the innovation cliff. Another win for agile disruptors over slow-moving incumbents.
This isn't just a trade deal; it's a strategic playbook for the next decade. It connects a billion-plus consumer base with a unified regulatory bloc, setting a new template for digital-age alliances. The old rules of engagement are being rewritten—one clause at a time.
Trade deal follows decades of stalled negotiations
The signing marks the end of a negotiation process that began years ago but got real momentum again in 2022, when both sides decided to give it another go.
The delay came down to disagreements on agriculture and automotive trade, areas both sides have been known to protect heavily.
Hosuk Lee-Makiyama, director at the European Centre for International Political Economy, said both India and the EU tend to be “very protectionist,” which slowed the talks for years.
He said neither India nor the EU had managed to secure major trade deals in recent years, and with the U.S. and China off the table, this might be “one of the best they can get.”
The deal creates a trading block covering 2 billion people. The timing is no accident either. With global tensions and supply chain dramas still going on, both India and the EU are betting big on closer economic ties.
A joint statement from Modi and EU Commission President Ursula von der Leyen was expected later Tuesday during the India-EU summit in New Delhi, outlining the fine print of the agreement.
U.S. criticizes EU for going ahead with India deal
The United States wasn’t thrilled. Treasury Secretary Scott Bessent hit back at the EU for going ahead with a major deal with India while the U.S. still has trade restrictions in place. Speaking on ABC News, Scott said:-
“The U.S. has made much bigger sacrifices than Europeans have. We have put 25% tariffs on India for buying Russian oil. Guess what happened last week? The Europeans signed a trade deal with India.”
As for Donald Trump, now the 47th president of the United States, he hasn’t said anything publicly yet. But no one in D.C. is expecting applause.
Meanwhile, India’s Petroleum and Natural Gas Minister Hardeep Singh Puri tried to keep the tone neutral when speaking to CNBC. “I WOULD try and look at the positive side,” Puri said, brushing aside concerns about delays. He added that a U.S.-India trade deal is “at a very advanced stage” and suggested, “Everybody needs to chill a bit.”
Puri said he was told by officials in the negotiations that the U.S. deal could come soon, though he didn’t give a timeline. He also described India’s relationship with Washington as “very strong,” and claimed that India’s open stance on trade was clear from the EU agreement.
“There’s an economic opportunity here for others who want trade deals,” Puri added. “It’s going to be a mutual benefit, not only for the EU but the United States and elsewhere also.”
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