EU and India Strike Historic Trade Deal
Written by Julie Marie Winger Eriksen
The past few weeks have been turbulent for Europe’s leaders and the EU, following U.S. President Donald Trump’s controversial remarks about taking over Greenland, along with threats of punitive tariffs against countries that opposed him. This week, however, the mood has shifted for the EU’s 27 member states, with the signing of a trade agreement with the world’s most populous nation, India.
EU Commission President Ursula von der Leyen declared Tuesday morning that Europe and India are making history with their new trade agreement. She went on to describe the deal as “the mother of all deals”, adding that “we have created a free trade zone of two billion people, with both sides set to benefit.” According to Indian Prime Minister Narendra Modi, the agreement will account for 25 percent of global gross domestic product and one third of world trade.
The European Commission highlighted the significance of the agreement in a press release, stating that “It will strengthen economic and political ties between the world’s second and fourth largest economies, at a time of rising geopolitical tensions and global economic challenges, highlighting their joint commitment to economic openness and rules-based trade.” Beyond strengthening economic ties, the agreement is also expected to reinforce cooperation on security and defense.
Through its membership in EFTA, Norway signed a trade agreement with India in 2024, which took effect in October 2025. Alongside the EU’s agreement, this highlights emerging structures in the global market and shifting economic and geopolitical dynamics seen in recent decades.
