India and the European Union signed a free-trade agreement on Tuesday in an effort to deepen economic ties. The President of the European Commission, Ursula von der Leyen, announced that the deal is now official. Ursula called it the “mother of all deals” in a rebuff to Trump’s policies.

The Prime Minister of India, Narendra Modi, hailed the free-trade agreement with the European Union as “historic.” Speaking at a joint press briefing in New Delhi, Modi said, “India has completed its biggest and most historic free trade agreement. This historic agreement will make it easier for our farmers and small businesses to reach the European markets.”

The free-trade conclusion between India and the European Union shows the rapidly shifting nature of global affairs. It also puts the spotlight on Trump’s trade policies as they clash with the rest of the world. The EU is now pairing back with India and China after having a hard stance for over two decades.

Also Read: Bigger Returns In 2026: Where Is My Tax Refund?

What Is India & the European Union’s Free-Trade Deal All About? Explained

The European Union and India’s free-trade deal is expected to double the EU’s exports by 2032. India delivered a tariff cut on 96.6% of the shipments, according to the EU’s press release. The EU, in turn, has cut tariffs on 99.5% of all goods exported from India.

This is an ambitious trade deal signed between India and the EU. New Delhi has also agreed to allow 250,000 European-made vehicles to enter the country at preferential duty rates. The development is also seen as a take-down on Trump’s restrictive tariffs in a competitive market.

“India has risen, and Europe is truly glad about it because when India succeeds, the world is more stable, more prosperous, and more secure,” said the European Union’s Von der Leyen in a press briefing.