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Historic Free Trade Agreement Finalized Between India and European Union
BY Connect Newsroom - Jasmine Singh, Jan 27, 2026 3:23 PM - REPORT AN ERRORAfter nearly two decades of negotiations, India and the European Union have finalized a landmark free trade agreement, marking a significant boost to economic ties between the two regions. Officials say the deal opens new avenues for trade and investment while strengthening strategic economic partnerships.
Prime Minister Narendra Modi confirmed the agreement on Tuesday, highlighting that both sides are using the pact to reinforce their economies amid uncertain trade relations with the United States. He described the deal as a major step toward deeper cooperation and expanded market access.
Under the agreement, tariffs on a wide range of goods will be reduced or eliminated, allowing Indian and European products to reach each other’s markets more easily. Analysts say the pact is expected to benefit key sectors including technology, pharmaceuticals, automobiles, textiles, and steel.
The free trade agreement is projected to create significant opportunities for India’s population of roughly 1.4 billion and millions of consumers across EU member states. Experts note that it could also foster stronger industrial and commercial links between India and Europe in the coming years.
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