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India and EU Announce Historic Trade Deal
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India and EU Announce Historic Trade Deal

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James ThompsonJames Thompson
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India and EU Announce Historic Trade Deal

The European Union and India have announced a landmark trade deal after nearly two decades of on-off talks, aiming to deepen ties amid tensions with the US. The deal will allow free trade of goods between the bloc of 27 European states and the world's most populous country. Indian Prime Minister Narendra Modi called the pact "historic" and European Commission President Ursula von der Leyen said it was the "mother of all deals".

Key Highlights

  • The trade deal will eliminate tariffs on most exports of chemicals, machinery, and electrical equipment.
  • Duties on motor vehicles will be cut to 10% under a quota of 250,000 vehicles.
  • India will cut tariffs on wine, beer, and olive oil from the EU.
  • The agreement will support investment flows, improve access to European markets, and deepen supply-chain integration.
  • Almost all of India's exports will get "preferential access" into the EU.
  • The deal will boost manufacturing and services sectors in India.
  • The EU is India's largest trading partner in goods, with bilateral merchandise trade reaching $136bn in 2024-25.
  • Talks for a deal started in 2007 but stalled in 2013 over roadblocks in market access and regulatory demands.

The Deep Context

The trade deal between India and the EU is a significant development in the global trade landscape. The two sides have been negotiating for nearly two decades, with talks stalled in 2013 due to differences over market access and regulatory demands. However, with the current tensions between the US and its trading partners, the EU and India have seen an opportunity to strengthen their economic ties. As reported by CNBC, the US-India trade deal is still in the works, but the EU-India deal is seen as a significant step forward. The deal will have a significant impact on the global economy, with the EU and India together accounting for nearly 25% of global gross domestic product and a market of two billion people. As noted by Reuters, the deal will slash tariffs on most goods, aiming to boost trade between the two sides.

The EU-India trade deal is also seen as a strategic move to counterbalance the growing influence of the US and China in the global economy. As reported by Yahoo News, the deal is being called the "mother of all deals" as it represents about a third of global trade. The deal will also have a significant impact on the Indian economy, with the potential to boost manufacturing and services sectors. As noted by MSN, Prime Minister Narendra Modi hailed the deal as a "partnership for global good" that will create quality jobs.

The deal is also expected to have a significant impact on the global trade landscape, with the potential to set a new standard for free trade agreements. As reported by Finance Yahoo, the deal is seen as a landmark agreement that will advance the EU-India trade relationship. The deal is also expected to have a significant impact on the EU's trade relationships with other countries, including the US. As noted by Bloomberg, the deal may also have implications for the EU's trade relationships with other countries, including the US.

Voices from the Streets

The trade deal has been welcomed by businesses and industries on both sides. As reported by BBC News, the deal is expected to boost trade between the two sides and create new opportunities for businesses. The deal has also been welcomed by Indian farmers and small businesses, who will have easier access to European markets. As noted by Reuters, the deal will slash tariffs on most goods, aiming to boost trade between the two sides.

However, some analysts have also raised concerns about the potential impact of the deal on Indian industries. As reported by CNBC, some analysts have raised concerns about the potential impact of the deal on Indian industries, particularly in the manufacturing sector. The deal may also have implications for Indian workers, particularly in the services sector. As noted by MSN, Prime Minister Narendra Modi hailed the deal as a "partnership for global good" that will create quality jobs.

Legislative & Jurisdictional Conflict

The trade deal will need to be approved by the European Parliament and member states before it can come into effect. As reported by Yahoo News, the deal is expected to face some opposition in the European Parliament, particularly from members who are concerned about the potential impact on European industries. However, as noted by Finance Yahoo, the deal is seen as a landmark agreement that will advance the EU-India trade relationship.

The deal may also have implications for the EU's trade relationships with other countries, including the US. As reported by Bloomberg, the deal may also have implications for the EU's trade relationships with other countries, including the US. The deal may also raise concerns about the potential impact on global trade, particularly in the context of the ongoing trade tensions between the US and its trading partners. As noted by Reuters, the deal will slash tariffs on most goods, aiming to boost trade between the two sides.

Projections & Critical Questions

The trade deal is expected to have a significant impact on the global economy, with the potential to boost trade between the EU and India. As reported by CNBC, the deal is seen as a significant step forward in the EU-India trade relationship. However, there are also concerns about the potential impact on Indian industries, particularly in the manufacturing sector. As noted by MSN, Prime Minister Narendra Modi hailed the deal as a "partnership for global good" that will create quality jobs.

The deal may also raise questions about the potential impact on global trade, particularly in the context of the ongoing trade tensions between the US and its trading partners. As reported by Yahoo News, the deal is being called the "mother of all deals" as it represents about a third of global trade. The deal may also have implications for the EU's trade relationships with other countries, including the US. As noted by Finance Yahoo, the deal is seen as a landmark agreement that will advance the EU-India trade relationship.

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