India and the European Union signed a free trade agreement (FTA) on Tuesday, a pact dubbed as the "mother of all deals". Prime Minister Narendra Modi and European Commission President Ursula von der Leyen hailed the trade deal and said it was a historic moment for bilateral ties.
Several agreements in the deal, including massive cuts in duties, benefit both the EU and India. The talks surrounding the greatness of the deal entered a television debate between two members of the European Parliament -- Ciaran Mullooly and Jörgen Warborn.
Mullooly agreed with his opponent, Warborn, that the European Union needs to do the big deals, and that's why, he said, "I am happy with India".
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Warborn appreciated Ciaran Mullooly's agreement with him and said, "I think it is very good that Ciaran is supportive of the agreement with India. We need that. We need more trade agreements in general."
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India-EU trade deal
The India-EU trade deal is likely to create a market of two billion people and account for nearly 25 per cent of the global GDP (gross domestic product) and nearly one-third of global trade.
{{/usCountry}}The India-EU trade deal is likely to create a market of two billion people and account for nearly 25 per cent of the global GDP (gross domestic product) and nearly one-third of global trade.
{{/usCountry}}The trade deal cuts tariffs on almost 97 per cent of EU exports entering India. The agreement also allows preferential access to 97 per cent of tariff lines for goods from India in the EU markets, covering 99.5 per cent of the value, benefitting the Indian exporters.
This is the largest trade agreement that both the EU and India have ever concluded.
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Benefits to EU exporters include the biggest trade opening given by India to any trade partner, privileged access to New Delhi for EU service providers in key areas, simplification of customs procedures to make exports quicker and easier, protection of EU intellectual property, and a dedicated chapter for small EU businesses.
Indians will also get several benefits from this FTA with Europe. Several European goods, including cars, wine, spirits, beer, olive oil, chocolates, pasta, fruit juices, medical devices and equipment, pharmaceuticals, and machinery and industrial equipment, among several other products, will get cheaper for Indians.
What PM Modi and Urusula von der Leyen said
PM Modi hailed the deal as the "mother of all deals" and said, "This agreement will bring major opportunities for the public in India and Europe. This is a perfect example of a partnership between two major economies of the world."
European Commission President Ursula von der Leyen, meanwhile, said that India and Europe have made history with the trade deal.
"We have concluded the mother of all deals. We have created a free trade zone of two billion people, with both sides set to benefit. This is only the beginning. We will grow our strategic relationship to be even stronger," von der Leyen posted on X, along with a photograph with PM Modi.