India’s trade deal with the European Union gives businesses in the South Asian nation a reprieve from punishing U.S. tariffs, keeping alive Prime Minister Narendra Modi’s ambition to make the country a global manufacturing hub.
Dubbed the “mother of all deals” by both sides, the free trade pact will open the EU market more widely to Indian exporters, especially in labor intensive industries like clothing and furniture.
The bloc will eliminate or reduce tariffs on 99.5% of imports from India, including phasing out duties on apparel and leather, sectors battered by U.S. President Donald Trump’s 50% tariffs.