EU Council President Arrives in India to Seal Historic Trade Pact

New Delhi, India — The European Union’s top political representative, European Council President António Costa, has touched down in New Delhi, signalling a critical moment in long‑running negotiations with India over a free trade agreement (FTA) that both sides hope will reshape global economic ties. Costa’s arrival comes amid celebrations of India’s Republic Day and on the eve of a high‑stakes EU‑India summit, where leaders aim to finalize the deal after nearly two decades of diplomacy and talks.

The proposed agreement — described by officials as the “mother of all deals” — would mark one of the most ambitious trade pacts negotiated by either party and could unlock major economic and strategic benefits for both the EU and India.


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Diplomacy at the Heart of Economic Expansion

President Costa’s visit, which began on Sunday, is part of a broader EU delegation that includes European Commission President Ursula von der Leyen. Both leaders will serve as chief guests at India’s 77th Republic Day celebrations in New Delhi on Monday before attending the 16th EU‑India Summit scheduled for Tuesday, where the trade accord is expected to be sealed.

In remarks ahead of the summit, Ms. von der Leyen praised India’s emerging global role, stating that “a successful India makes the world more stable, prosperous and secure.” Her comments reflect a deepening EU interest in India not only as a trade partner but as a strategic global ally amidst shifting geopolitical landscapes.


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“Mother of All Deals”: What the Pact Entails

After around 20 years of discussions, the EU‑India FTA seeks to dramatically expand bilateral trade by reducing tariffs and opening markets previously constrained by regulatory and political barriers. The agreement would cover goods and services, with negotiators indicating that new tariff reductions on items such as automobiles, wine, textiles, and jewellery could be central components.

The pact is expected to give European exporters unprecedented access to one of the world’s most protected markets, particularly in industrial and agricultural sectors. EU officials have suggested that exports to India could double if the deal is concluded as envisioned.

For India, the deal offers improved access to the EU’s vast consumer market and opportunities to scale up exports of its manufactured and service goods. This could play a significant role in job creation and technology transfers — priorities for New Delhi as it eyes accelerated economic growth.


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Economic Stakes and Strategic Dimensions

Bilateral trade between the EU and India has already grown sharply. In 2024, goods trade between the two parties reached roughly €120 billion — almost double the volume seen a decade ago — with services trading around €60 billion.

Yet the deal’s ultimate impact will go beyond simple trade figures. For the EU, concluding this agreement is part of a broader strategy to diversify economic partnerships and reduce dependence on single markets such as China or the United States. The pact is seen as a tool to strengthen supply chains, foster innovation linkages, and enhance geopolitical resilience.

For India, which is poised to become the world’s fourth‑largest economy this year according to IMF projections, the treaty would cement its role as a major player in global trade and potentially spur increased foreign direct investment. It also aligns with New Delhi’s goal of expanding its export base while attracting technology and capital inflows for infrastructure development.


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Negotiation Hurdles and Sensitive Issues

Despite the optimism surrounding the deal, sensitive areas remain under negotiation. India has traditionally maintained high tariff walls around certain sectors to protect domestic producers, particularly in agriculture, automobiles, and dairy. Meanwhile, the EU has sought stronger commitments on regulatory standards, intellectual property, and environmental compliance.

Some sectors such as agriculture may be excluded from the final agreement due to domestic sensitivities in India, where farming employs nearly half the workforce. EU negotiators have indicated that while agricultural products remain a politically charged area, other goods and services can provide sufficient economic gains to justify concluding the pact.

Even so, both sides acknowledge that reaching consensus on non‑tariff barriers — including safety standards and carbon regulation policies — will be essential to realizing the full benefits of the deal.


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Geopolitical Implications

The EU‑India trade agreement also carries important geopolitical weight. With global economic tensions rising — including ongoing tariff pressures from the United States and strategic competition with China — Brussels and New Delhi view deeper economic integration as a hedge against protectionism and fragmentation.

Analysts suggest that the timing of the summit and potential pact is significant: it underscores a shared interest among like‑minded powers to reinforce multilateral trade norms and buttress economic stability amid a fracturing global order.


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Looking Ahead: What Comes Next

If the EU‑India FTA is formally agreed upon at the upcoming summit, both parties will embark on a ratification process that could take up to a year in respective parliaments. Yet the momentum behind the negotiations suggests strong political will on both sides to see the agreement implemented swiftly and effectively.

For European and Indian businesses, the deal could unlock new opportunities, reduce costs, and expand innovation linkages. For policymakers, it signals a strategic alignment at a time when global economic dynamics are rapidly evolving. Whether the pact lives up to its lofty description as the “mother of all deals” will ultimately depend on its implementation and the sustained cooperation of both partners on shared economic and geopolitical goals.