India-EU FTA: 'Mother of All Deals' Set to Reshape Trade Landscape
Business
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Moneycontrol27-01-2026, 11:19

India-EU FTA: 'Mother of All Deals' Set to Reshape Trade Landscape

  • India and the EU are set to sign a landmark Free Trade Agreement (FTA) on January 27, dubbed the "mother of all deals."
  • The EU will gain easier access for its wines, spirits, and automobiles in India, while India will expand exports of textiles, leather, and marine products.
  • Negotiations, initially launched in 2007 as BTIA, stalled in 2013 over disagreements but relaunched in 2022 with renewed political will.
  • India's exports to the EU totaled $75.85 billion in 2024-25, making the EU India's largest trading partner for goods.
  • The deal could offer India a carve-out from the EU’s Carbon Border Adjustment Mechanism (CBAM), which imposes a 20-35% tax on select imports from January 2026.

Why It Matters: The India-EU FTA, a culmination of nearly two decades of talks, promises significant economic gains for both sides.

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