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India and Europe has signed a historic free trade deal with 27 countries represented by European Union deepening ties between the two largest centres of democracies on this planet.

The ‘Mother of All Trade Deals’ just does not stop at being an economic and commerce deal but now has a elaborate Defence and Strategic cooperation.

“We have concluded the mother of all deals,” European Commission President Ursula von der Leyen posted on X after meeting Indian Prime Minister Narendra Modi in Delhi.

“Europe and India are making history today. We have created a free trade zone of two billion people, with both sides set to benefit,” Von der Leyen said.

“This is only the beginning. We will grow our strategic relationship to be even stronger,” she added,

This deal accounts for 25 per cent of global GDP and one-third of global trade.

Highlighting the strategic importance of the pact, the Prime Minister Modi called it “an excellent example of coordination between two economies of the world.”

He emphasised that the agreement will complement existing deals with Britain and the European Free Trade Association (EFTA), strengthening global trade and supply chains.

“This free trade agreement will strengthen confidence in India for every business and every investor in the world,” PM Modi remarked, noting that the deal will provide a significant boost to India’s manufacturing and services sectors.

Following is the List of Outcomes of the visit of EU leadership to India.

The European Commission said the agreement would eliminate tariffs on most exports of chemicals, machinery and electrical equipment, as well as aircraft and spacecraft, following phased reductions. Significantly, duties on motor vehicles, currently as high as 110%, would be cut to 10% under a quota of 250,000 vehicles.

The deal is set to lower costs for European products entering India – such as cars, machinery and agricultural food items, after import duties are reduced. Sensitive agricultural sectors, including dairy and sugar, have been excluded.

Brussels said the agreement would support investment flows, improve access to European markets and deepen supply-chain integration.

“This is a historic agreement,” Modi said. “It will make access to European markets easier for India’s farmers and small business. It will also boost manufacturing and services sectors. It will boost innovative partnerships.”

The deal comes as both India and the EU contend with economic and geopolitical pressure from the US.

Delhi is grappling with 50% tariffs imposed by President Donald Trump last year amid talks aimed at securing a trade deal between India and the US that are still dragging on.

Both the two EU leaders were chief guests at this year’s 77th Republic Day celebrations at the Kartavya Path.