European trade commissioner calls the upcoming agreement with India "the mother of all agreements"

The European Union has entered the final stage of negotiations on the long-awaited free trade agreement with India. This was stated by European Commissioner for Trade Maroš Šefčovič.

He called the upcoming agreement the "mother of all agreements", as it opens up a market of 1.4 billion people to European exports and services.

"This is the largest trade agreement in history," Šefčovič emphasized.

Today, about 6,000 European companies operate in India. According to the European Commission, over the past decade trade between the EU and India has grown by almost 90%, with European exports reaching €48.8 billion in 2024.

If the agreement is signed, it will create a free trade area covering about 2 billion people and eliminate Indian duties on imports from Europe. However, according to Šefčovič, the document will not be comprehensive.

"We have decided to leave the most sensitive sectors outside the agreement in order to focus on a positive outcome," the European Commissioner explained.

According to Šefčovič, the negotiations were not easy. He noted that Indian partners are very tough negotiators.

"In some industries in India, tariffs reach 150%. Therefore, most of the economy is completely closed to European exporters. Now, the opening of markets will be a great benefit," he said in an interview with Euronews in New Delhi on the eve of the EU–India summit.

Šefčovič also emphasized the strategic importance of the agreement. According to the European Commissioner, it will help the EU insure itself against global trade shocks.

Brussels hopes the agreement will send an important signal to other partners amid fears that delays in ratifying agreements with Mercosur undermine the EU’s credibility as a trading power.

Earlier, Reuters reported that India plans to reduce car tariffs from 110% to 40% for imports from the European Union. According to the agency, the government of Prime Minister Narendra Modi has agreed to reduce the tax on a limited number of cars from 27 EU countries with an import price of more than €15,000.

Over time, the tariff will be reduced to 10%, which will facilitate access to the Indian market for European automakers such as Volkswagen, Mercedes-Benz, and BMW.

• India continues to operate under the 50% tariffs imposed by the US presidential administration of Donald Trump, which in August 2025 added another 25% as punishment for the purchase of Russian oil.
• In early January, Trump said that the US may impose new duties on India if it does not limit its purchases of Russian oil.