While on one hand Donald Trump is continuing his Tariff Attack and is seen continuously giving new threats, on the other hand India is playing a different game. Yes, amidst tariff tension, India is going to make the biggest deal (India-EU Trade Deal) with the European Union and it can be announced tomorrow i.e. on 27th January.
President of the European Commission Ursula von der Leyen (Ursula von der Leyen) is also on Delhi visit. According to reports, officials related to the matter have set a target of removing duties on more than 90% of the traded goods in the India-EU FTA, while Ursula Vaughan has described this agreement as the ‘Mother of All Deals’. Let us understand how India is going to benefit from this deal?
‘A market of 2 billion people will be created’
EU Chairperson Ursula von der Leyen, during her visit to Delhi, appeared very excited about this FTA (Free Trade Agreement) with India. While sharing his first message after reaching Delhi, he said that India-EU can help heal the broken world plagued by conflict, protectionism and political instability. If reports are to be believed, this deal can be announced on January 27.
India gets these benefits from FTA with EU
Global Trade Research Initiative (GTRI) has said in its report released on Sunday on India-EU trade deal that this FTA is expected to be announced on January 27. This can help the domestic industry to reduce costs and expand business.
GTRI Founder Ajay Srivastava says that the tariff cut under the Free Trade Agreement will mainly reduce input costs, increase trade volume, which will benefit producers and consumers on both sides. According to officials associated with this matter, India-EU FTA can cut or remove tariffs on more than 90% of goods and this will especially benefit sectors including clothing, pharmaceuticals, engineering products and IT services.
I’m so glad to be in India today.
India and Europe have made a clear choice.
The choice of strategic partnership, dialogue and openness.
Leveraging our complementary strengths.
And building mutual resilience.
We are showing a fractured world that another way is possible. pic.twitter.com/J04vNQbW30
— Ursula von der Leyen (@vonderleyen) January 25, 2026
Ursula von der Leyen has described it as the biggest deal till date and said that it will be an agreement that will create a market of 2 billion people, which will be about a quarter of the global GDP. He expressed his happiness of visiting India through a post on the social media platform Twitter (now X).
The business is worth 136 billion dollars
If we look at the trade data of FY2025, the trade between India and the European Union stood at more than $136.53 billion. If we talk about imports, India’s goods imports from the European Union stood at $60.7 billion. Among these, high category machinery topped the import list with $13 billion.
Electronics imports stood at $9.4 billion, of which mobile phone parts ($3.7 billion) and circuits ($890.5 million) were imported. Apart from this, India imported aircraft worth $6.3 billion, medical equipment and scientific equipment worth $3.8 billion, while also imported special medicines worth $1.4 billion.
India exports so much to EU
After imports, now let us look at India’s exports to the European Union in the financial year 2025, its value was $ 75.9 billion. Mainly labour-intensive sectors had a major contribution in this. However, refined petroleum products topped the list with exports worth $15 billion. Among these, export of diesel was worth 9.3 billion dollars and export of ATF was 5.4 billion dollars. Electronics exports stood at $11.3 billion, which included smartphones worth $4.3 billion.
The export value of clothes from India was 4.5 billion dollars. Other major export categories included machinery and computers worth $5 million, organic chemicals worth $51 million, iron and steel worth $49 million and pharma products worth $3 million. Gems and jewelery exports to the EU stood at $2.5 billion, which mainly included cut and polished diamonds worth $1.6 billion. Automobile exports reached $2.2 billion.
India will have markets in 27 countries
This trade agreement with the European Union is also important for India because its potential scope is very wide. For Brussels, India has emerged as a major partner in reducing its dependence on China and strengthening relations with countries considered strategic allies. This deal will give India more access to the market of 27 member countries of the European Union and will boost exports.
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