What you need to know
TL;DR: Skip next section US treasury secretary criticizes India-EU trade deal
Skip next section US treasury secretary criticizes India-EU trade dealUS treasury secretary criticizes India-EU trade deal
TL;DR: US Treasury Secretary Scott Bessent criticized the European Union for finalizing a trade deal with India while trade negotiations between India and the US remain strained amid the Russia-Ukraine war.
US Treasury Secretary Scott Bessent criticized the European Union for finalizing a trade deal with India while trade negotiations between India and the US remain strained amid the Russia-Ukraine war.
Speaking to ABC News on Sunday, Bessent said Europe was "financing a war against itself" by signing the agreement with India, arguing that it undermined US efforts to penalize New Delhi for buying Russian oil.
"We have put 25% tariffs on India for buying Russian oil. Guess what happened last week? The Europeans signed a trade deal with India," Bessent said.
He added that Russian crude was being shipped to India, refined there and sold on to Europe.
"They are financing the war against themselves," he said.
Skip next section What the leaders said ahead of the summitWhat the leaders said ahead of the summit
TL;DR: The EU stands to gain the highest level of access ever granted to a trade partner in the traditionally protected Indian market.
- "The EU stands to gain the highest level of access ever granted to a trade partner in the traditionally protected Indian market. We will gain a significant competitive advantage in key industrial and agri-good sectors." — European Commission President Ursula von der Leyen
- "India and Europe have made a clear choice. The choice of strategic partnership, dialogue and openness. We are showing a fractured world that another way is possible." — von der Leyen
- "India is a crucial partner for the EU. Together we share the capacity and responsibility to protect the rules-based international order." — Antonio Costa, European Council President
- "Their [Von der Leyen and Costa's] presence underscores the growing strength of the India-European Union partnership and our commitment to shared values. The visit will add momentum to the deepening engagement and cooperation between India and Europe across diverse sectors." — Indian Prime Minister Narendra Modi
- "There is strong momentum for closer cooperation with India, and we are seizing it." — Kaja Kallas, Vice-President of the European Commission
A history of India-EU ties
TL;DR: India and European Union ties date back to 1962, when diplomatic relations were established with the European Economic Community, the precursor to the EU.
India and European Union ties date back to 1962, when diplomatic relations were established with the European Economic Community, the precursor to the EU.
Since then, ties have steadily deepened across trade, technology and security, and now span areas from clean energy to space cooperation.
The EU is India's largest trading partner in goods, with bilateral trade worth about $136.5 billion (162.4 billion euros) in the 2024–25 fiscal year.
In 2004, the relationship was upgraded to a Strategic Partnership, which marked its 20th anniversary in 2024.
Cooperation has expanded through the India-EU Trade and Technology Council, launched in 2022, with agreements on semiconductors, 6G research and artificial intelligence. Security and defense ties have also grown, including joint naval exercises.
Earlier in January, German Chancellor Friedrich Merz said Germany wants to work closer on security issues with India to reduce the latter's reliance on Russia, following a meeting with Indian Prime Minister Narendra Modi.
Germany and India signed agreements on critical minerals, the health sector and an artificial intelligence innovation center.
"The MoUs being signed today on all these issues will give new momentum and strength to our cooperation," Modi said at a joint news conference with Merz.
Skip next section WATCH: Indian companies in Germany hope for free trade dealA growing number of Indian companies do business in Germany, blending service and manufacturing. Many hope that a new free trade agreement can boost their business.
Indian companies in Germany hope for free trade deal
TL;DR: To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video Skip next section What to know about the proposed free-trade deal
To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video
Skip next section What to know about the proposed free-trade dealWhat to know about the proposed free-trade deal
TL;DR: Creates one of the world’s largest free‑trade areas, covering ~2 billion people and nearly 25% of global GDP Formal signing to take six months Implementation expected within a year EU–India goods trade totals €120 bi...
- Creates one of the world’s largest free‑trade areas, covering ~2 billion people and nearly 25% of global GDP
- Formal signing to take six months
- Implementation expected within a year
- EU–India goods trade totals €120 billion ($139 billion) in 2024
- Trade in services added another €60 billion ($69 billion)
- India will cut high import duties on EU goods such as cars and wine
- EU will ease access for Indian exports, including textiles and pharmaceuticals
- Deal follows negotiations that began in 2007
India, EU set to announce 'mother of all trade deals'
TL;DR: India and the European Union (EU) will announce a long-awaited free trade agreement, referred to as "the mother of all deals," after concluding negotiations that began nearly two decades ago, officials said.
India and the European Union (EU) will announce a long-awaited free trade agreement, referred to as "the mother of all deals," after concluding negotiations that began nearly two decades ago, officials said.
Indian Prime Minister Narendra Modi is due to meet European Commission President Ursula von der Leyen and European Council President Antonio Costa in New Delhi to formalize the pact, which both sides have described as historic.
"Official level negotiations are being concluded and both sides are all set to announce the successful conclusion," India's trade secretary Rajesh Agrawal told AFP news agency late on Monday.
"Final negotiations have been focused and fruitful, and we are now very optimistic that we will land this historic trade deal," an EU official said on Monday.
Both von der Leyen and Costa were feted as guests of honor at India's Republic Day parade on Monday.
EU eager to finalize 'mother of all deals' with India
TL;DR: Skip next section Welcome to our coverage
Skip next section Welcome to our coverageWelcome to our coverage
TL;DR: European Union leaders Antonio Costa and Ursula von der Leyen are in New Delhi to co‑chair the India‑EU Summit with Prime Minister Narendra Modi, and they're expected to unveil a long‑awaited free trade agreement.
European Union leaders Antonio Costa and Ursula von der Leyen are in New Delhi to co‑chair the India‑EU Summit with Prime Minister Narendra Modi, and they're expected to unveil a long‑awaited free trade agreement.
The deal has been two decades in the making, and one official even called it the "mother of all deals."
Negotiations wrapped on Monday, clearing the way for the announcement.
The EU sees India as a crucial future market, while India views Europe as a key source of tech and investment.
Trade already reached €120 billion in 2024, with both sides aiming much higher.
In this blog we'll explore why this agreement matters so much.
Curated by Shiv Shakti Mishra
