The long–awaited India–EU free trade agreement has finally been sealed, and the timing couldn’t be more meaningful. Across Asia, economies have been actively looking to diversify their export markets beyond the US. In fact, this strategic shift was one of the key reasons Asia’s export growth held up so well last year. The India–EU deal further strengthens this momentum.
Some are calling it the “mother of all deals”, not just for its scale, but because it signals what could be the start of a broader shift in global trade alignments. It also highlights the EU’s willingness to take a patient, pragmatic approach to accommodating India’s sensitivities regarding the opening of certain sectors, an approach on which the US arguably been less flexible.
Overall, the agreement marks a significant milestone for both India’s trade diversification ambitions and Asia’s evolving export landscape. Below, we discuss what the deal means for India.