The European Union and India are set to announce a long-anticipated trade agreement on Tuesday, marking the conclusion of negotiations that have stretched on for nearly two decades. According to Reuters, India’s trade secretary confirmed that both sides are preparing to unveil what officials have described as a “historic” deal, as New Delhi and Brussels navigate increasingly strained economic and political ties with the United States.
The agreement is expected to allow for the free trade of goods between European Union, which is made up of 27 member nations, and India. Together, the two economies represent roughly a quarter of the world’s gross domestic product and a combined consumer market of about two billion people, underscoring the scale and potential impact of the deal on global trade flows.
The timing of the announcement is notable, coming just days after the EU finalized a trade pact with the South American bloc Mercosur, and as it continues to advance agreements with countries including Indonesia, Mexico, and Switzerland. Over the same period, New Delhi has also moved aggressively on the trade front, signing new agreements with Britain, New Zealand, and Oman, signaling a broader push by India to expand its global trade footprint.
After nearly 20 years of negotiations, the deal is expected to open India’s market — the world’s largest by population — to freer trade with the European Union, which is already India’s largest trading partner. Supporters of the agreement say it could deepen economic ties, lower barriers for exporters on both sides, and reshape supply chains at a time when global trade relationships are being reexamined amid geopolitical uncertainty.
