India and the European Union have reached a significant trade agreement after almost 20 years of negotiations.
The agreement comes as both sides aims to deepen ties amid rising tensions with the United States.
"We did it, we delivered the mother of all deals," European Commission President Ursula von der Leyen said at a media briefing in Delhi, as per BBC.
“We have concluded the mother of all deals. We have created a free trade zone of two billion people, with both sides set to benefit,” she added separately in a post on X.
Meanwhile, Indian Prime Minister Narendra Modi called the deal "historic,” adding that this “deal will bring many opportunities for India’s 1.4 billion and many millions of people of the EU.”
The trade deal will enable goods to be traded freely between India and the 27 EU countries.
The European Commission stated that tariffs on most exports, including chemical, machinery, aircrafts and electronics will be gradually removed.
Notably, duties on motor vehicles, currently as high as 110% will be cut to 10% for up to 250,000 vehicles.
India, on the other hand will lower taxes on certain European products like wine, olive oil and beer.
The agreement will become official later this year after it is reviewed and approved by the European Parliament and EU member states.
