India-EU 'Mother of All Deals' to Boost Manufacturing, Services

• India and the EU finalised a major free trade agreement
• Tariff cuts to support manufacturing, services and trade
• Deal signals deeper strategic and economic alignment

The European Union and India are moving toward finalizing their free trade agreement which both sides have desired for many years. Prime Minister Narendra Modi praised the agreement as an important economic achievement which will transform relations between two major global markets.

The treaty between two parties, who together represent about 25 percent of worldwide economic output, will create new production opportunities, while developing economic ties through services and investment which will benefit both nations.

The prime minister observed that many people already refer to the proposed India-EU trade pact as the “mother of all deals”, because of its enormous size and strategic value.

“A landmark agreement is being signed between India and the European Union. People in the world are discussing this as the mother of all deals. This agreement brings tremendous opportunities for India's 1.4 billion people and the millions of people in European countries”, PM Modi stated.

The deal will create multiple business opportunities which will benefit both workers and consumers across both regions according to him. The deal represents an important instance of cooperation between two major global economic blocs according to him.

He added, “The deal represents approximately 25 per cent of global GDP and nearly one-third of global trade. It strengthens our shared commitment not only to trade but also to democracy and the rule of law. The India-EU Free Trade Agreement complements the India-UK trade deal. It will boost the manufacturing sector and support services”.

Also Read: India, EU to Sign Security, Defence Partnership Next Week

Indian and EU negotiators have finished their negotiations about the free trade agreement which intends to increase mutual trade while developing deeper economic connections between both regions.

Officials from both parties describe the upcoming deal, which they will announce soon, as achieving balanced results through its ambitious and future-oriented design. The start of negotiations occurred in 2007, but the process failed to succeed until the recent achievement of a milestone after twenty years of interruptions.

The current timing demonstrates how worldwide trade patterns have changed because of geopolitical shifts and existing uncertainty about international trade systems.

European Commission President Ursula von der Leyen, currently visiting India and serving as chief guest at New Delhi’s 77th Republic Day celebrations, echoed Modi’s enthusiasm, also calling the pact the mother of all trade deals.

The contract will decrease or abolish tariffs that apply to most industrial and consumer products which India exports to EU member countries except for certain agricultural items which will remain untouched.

The agreement will enable the European Union to gain better access to the Indian automobile market which will establish specific export limits while providing Indian businesses and service providers with new opportunities throughout Europe.