India and EU clinch the 'mother of all deals' in a historic free trade agreement

Описание: (27 Jan 2026)
RESTRICTION SUMMARY:

ASSOCIATED PRESS
New Delhi - 27 January 2026
1. European Council President Antonio Costa, European Commission President Ursula von der Leyen and Indian Prime Minister Narendra Modi walking in, interlocking hands in celebratory poses
2. SOUNDBITE (English) Ursula von der Leyen, European Commission President:
++SOUNDBITE PARTIALLY COVERED++
“We did it. We delivered the mother of all deals. We are creating a market of two billion people, and this is the tale of two giants. The world’s second and fourth largest economies. Two giants who choose partnership in a true win-win fashion. A strong message that cooperation is the best answer to global challenges.” 

EUROPEAN UNION
New Delhi - 27 January 2026
3. Various of Modi, Costa and von der Leyen sitting at meeting

ASSOCIATED PRESS
New Delhi - 27 January 2026
4. SOUNDBITE (English) Antonio Costa, European Council President:
“Today is a historic moment. We are opening a new chapter in our relations on trade, on security, on people-to-people ties.” 
++WHITE FLASH++
5. SOUNDBITE (Hindi) Narendra Modi, Indian Prime Minister: 
++SOUNDBITE PARTIALLY COVERED++
“This is not just a trade agreement. It is a new blueprint for shared prosperity.” 
6. Modi, Costa, and von der Leyen posing for a photo
STORYLINE:
After nearly two decades of negotiations, India and the European Union announced Tuesday they have reached a free trade agreement to deepen economic and strategic ties.

The accord — dubbed the “mother of all deals” — could impact as many as 2 billion people.

The deal is also one of the biggest bilateral engagements on commerce and comes as Washington targets both India and the EU with steep import tariffs.

“This is not just a trade agreement. It is a new blueprint for shared prosperity,” India's Prime Minister Narendra Modi said.

India and the EU also agreed on a framework agreement for deeper defense and security cooperation, and a separate pact aimed at easing mobility for skilled workers and students, signaling their partnership extends beyond commerce.

Speaking at a joint news conference in New Delhi with European Commission President Ursula von der Leyen and European Council President António Costa, the Indian leader said the partnership with the EU will strengthen stability in the international system at a time of turmoil in the global order.

Washington is targeting both India and the EU with steep tariffs, disrupting established trade flows and pushing major economies to seek alternate partnerships.

The negotiations for the India-EU deal got a new impetus after U.S. President Donald Trump’s strong-arm tactics over tariffs and Greenland.

In a speech, von der Leyen said the accord was a tale of “two giants” — the world’s second and fourth largest economies — “who chose partnership, in a true win-win fashion.” She also said it sends "a strong message that cooperation is the best answer to global challenges.”

The deal, further integrating supply chains and strengthening joint manufacturing power, will also cut up to 4 billion euros ($4.7 billion) in annual tariffs for exporters and create jobs for millions of workers in India and in Europe.

A formal signing of the deal could come later this year after a legal scrubbing of the text while it is expected to go into effect sometime early next year, after ratification by the EU Parliament.



A quota system for automobiles, wines and whisky has been agreed on, bringing down steep duties.



On European wine, the tariffs in India would come down from 150% to 20% for the premium range.












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