European Council President Antonio Costa (l), Indian Prime Minister Narendra Modi, and European Commission President Ursula von der Leyen(r)|Narendra Modi|X

The European Union and India reached a landmark free trade agreement on Tuesday, the largest ever for either side, as they navigate uncertainty stemming from the United States’ erratic trade policy.

Touted as “the mother of all deals” by European Commission President Ursula von der Leyen, it aims to double EU exports to India by 2032. It would reduce or remove tariffs on 90% of bilateral goods trade, valued at $136 billion last year.

Under the arrangement, the world’s most populous nation will reduce tariffs on European cars from 110% to just 10%. It is also lowering duties on wine, pasta, and olive oil.

In return, the EU is reducing tariffs on Indian imports, including clothes, tea, spices, chemicals, and jewellery.

Economists suggest the immediate impact of the deal on India and Europe’s economies may be modest. Nevertheless, the agreement carries immense symbolic weight, as it marks a move away from US dependency and protectionism.

The deal must be ratified by law before taking effect.