JAKARTA - India and the European Union concluded negotiations on a landmark free trade agreement January 27, bringing together two billion people in what European Commission President Ursula von der Leyen called "the mother of all deals."

Prime Minister Narendra Modi met with von der Leyen and European Council President António Costa in New Delhi to announce the deal, which emerged after nearly 20 years of intermittent negotiations that resumed in 2022 following Russia's invasion of Ukraine.

“One thing is clear,” von der Leyen said, adding, “India and Europe are trusted and reliable strategic partners. We stand together. United in our commitment to help our businesses endure, thrive and grow.”

The agreement eliminates or reduces tariffs on 96.6 percent of EU goods exports to India, potentially doubling EU exports to India by 2032. European manufacturers of machinery, chemicals, pharmaceuticals and automobiles will gain broader market access, while Indian textiles, leather goods, marine products, gems and jewelry will face zero tariffs in EU markets.

For workers and professionals, the deal includes provisions for temporary entry and movement between the two economies. The two sides agreed to launch an Education and Skills Dialogue in 2026 to facilitate recognition of qualifications and learning periods abroad.

Commerce Minister Piyush Goyal projected that the textile sector alone could generate close to six to seven million jobs, a significant boost for India's second-largest employment sector after agriculture.

The agreement arrives as both economies face pressure from the changing global trade dynamics. India currently faces tariffs ranging from 25 to 50 percent on its U.S. exports under the Trump administration, while the EU seeks to reduce dependence on volatile markets. The EU is one of India's largest trading partners, with bilateral goods trade reaching $136.5 billion in the fiscal year through March 2025.

The deal now requires legal review, translation into all official EU languages and approval from the European Parliament and Council before implementation in early 2027.