On January 27, India and the European Union announced the conclusion of their Free Trade Agreement negotiations, with both sides hailing it the “Mother of All Deals.” In the current geopolitical climate, there is genuine substance behind the hyperbole. The agreement links two billion people across economies representing roughly a quarter of global GDP.
For India, the stakes are particularly high. With US President Trump having imposed 50% tariffs threatening nearly $87 billion worth of Indian exports, securing European market access offers an opportunity for strategic diversification. The deal appears to have given New Delhi negotiating leverage with Washington at a critical moment for the much-touted Indo-US trade agreement—it demonstrates that India has viable alternatives and clarifies what is (and isn’t) up for negotiation. India is keen to signal that it can expand trade partnerships on its own terms and that it has options beyond the United States.