'Mother of all deals’: India–EU trade pact to cut tariffs, boost defence ties

President of the European Commission Ursula von der Leyen visit in India

President of the European Commission Ursula von der Leyen (L), President of the European Council Antonio Luis Santos da Costa (C) and Indian Prime Minister Narendra Modi (R) after giving a joint press statement after their meeting at Hyderabad House in New Delhi, India, 27 January 2026. Source: EPA / RAJAT GUPTA/EPA

India and the European Union have struck a landmark free trade agreement after nearly two decades of negotiations. The agreement will eliminate or reduce tariffs on 96.6 per cent of EU exports to India, with the EU reciprocating on nearly 99 per cent of Indian exports. It also outlines a framework for deeper defence and security cooperation, along with a separate agreement designed to ease mobility for skilled workers and students.

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Published 28 January 2026 5:13pm

By Sydney Lang

Presented by Itee Dewan

Source: SBS

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India and the European Union have struck a landmark free trade agreement after nearly two decades of negotiations. The agreement will eliminate or reduce tariffs on 96.6 per cent of EU exports to India, with the EU reciprocating on nearly 99 per cent of Indian exports. It also outlines a framework for deeper defence and security cooperation, along with a separate agreement designed to ease mobility for skilled workers and students.

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