India-EU 'mother of all deals' joins India’s growing list of FTAs: A look at recent trade pacts

• India-EU free trade agreement marks a historic shift in India's trade strategy
• India signed major trade deals with UK, Oman, New Zealand, and EFTA in 2025
• India aims to become the world's fourth-largest economy by 2026

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The conclusion of the India-European Union free trade agreement, billed as the ‘mother of all deals’, marks a turning point in New Delhi’s trade strategy and comes amid a rapid expansion of India’s global trade footprint.

Described as historic and commercially significant, the India-EU pact is the largest trade agreement ever finalised by either side. It is expected to deepen economic and political ties between the world’s second- and fourth-largest economies at a time of heightened geopolitical tensions and global economic uncertainty.

European Commission President Ursula von der Leyen called the agreement a landmark moment. “The EU and India make history today, deepening the partnership between the world's biggest democracies. We have created a free trade zone of 2 billion people, with both sides set to gain economically,” she said, adding that the deal sends a global signal that rules-based cooperation still works.

FTA's singed in 2025

In 2025, India signed free trade agreements with the United Kingdom, Oman, New Zealand and the European Free Trade Association (EFTA), which comprises Iceland, Liechtenstein, Norway and Switzerland.

The EFTA deal includes a commitment of USD 100 billion in investment into India by 2040 and the creation of one million jobs. India’s trade pact with the UK, signed in July 2025, was its first comprehensive agreement with a major Western economy and aims to double bilateral trade from USD 56 billion in FY2024–25 to USD 112 billion by 2030, with duty-free access for 99% of Indian exports.

Oman has agreed to duty-free access for 99.38% of India’s exports, while New Zealand has offered duty-free access for all Indian exports and pledged USD 20 billion in investments by 2040.

Since 2021, India has largely focused on comprehensive trade agreements that go beyond tariffs to include broader economic cooperation. The UAE deal signed in 2022 targets non-oil bilateral trade of USD 100 billion by 2030. Talks are also underway to upgrade the limited trade pact with Australia into a full-fledged agreement, with the aim of doubling trade to USD 50 billion by 2028.

Bilateral trade remains central to the India-EU relationship. Total trade crossed USD 190 billion in 2024–25, with India exporting USD 75.9 billion in goods and USD 30 billion in services to the EU, while European exports to India stood at USD 60.7 billion in goods and USD 23 billion in services.

At the same time, India has been negotiating 12 new trade agreements, including a proposed bilateral trade agreement with the United States, its largest export market, and updates to eight existing pacts.

Indian exports have faced pressure from 25% US tariffs on Indian goods, including additional duties linked to India’s purchase of Russian oil, and delays in finalising the India-US deal.

Since mid-2025, however, India has used these challenges to diversify its export markets. After signing no trade agreements for nearly a decade, it has concluded seven new deals since 2021.

With GDP estimated at USD 4.13 trillion in 2025, up from USD 1.82 trillion in 2011, India’s growing economic size has also strengthened its negotiating leverage as it pushes to become the world’s fourth-largest economy by 2026.