US trade officials say the landmark India–European Union free trade agreement gives New Delhi a decisive edge, reshapes global supply chains, and reflects shifting alliances amid Donald Trump’s tariff-driven protectionism
New Delhi: India has emerged as a key beneficiary of the long-awaited India–European Union Free Trade Agreement (FTA), with senior US officials acknowledging that the deal significantly boosts New Delhi’s access to European markets while reflecting deeper shifts in global trade dynamics.
Reacting to the agreement, US Trade Representative Jamieson Greer said India had “come out on top,” noting that the EU is increasingly looking towards India as an alternative market in the wake of former US President Donald Trump’s aggressive tariff policies. Greer said Washington’s push for domestic production and higher barriers to foreign goods has prompted countries like the EU to seek new trade outlets, with India emerging as a natural partner.
“I think India comes out on top on this, frankly. They get more market access into Europe,” Greer said, adding that the pact could also include enhanced mobility opportunities for Indian workers, as suggested by European Commission President Ursula von der Leyen.
Often described as the “mother of all trade deals,” the India–EU FTA has been nearly two decades in the making. Under the agreement, 93 per cent of Indian exports are expected to receive duty-free access to the 27-nation European bloc. In return, Indian consumers are likely to benefit from reduced prices on luxury European cars and wines.
The scale of the deal is significant. Together, India and the EU account for nearly 25 per cent of global GDP and about one-third of international trade, agreeing on one of the most consequential economic partnerships in recent years.
Prime Minister Narendra Modi hailed the pact as transformative, stating, “This is not just a trade agreement. This is a new blueprint for shared prosperity.”
As globalisation faces pushback in parts of the West, the India–EU FTA signals a recalibration of economic alliances, positioning India as a central player in a rapidly evolving global trade landscape.
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