India-EU trade deal strong message that cooperation is best answer to global challenges: Ursula | India News
India-EU trade deal: India and the European Union (EU) successfully completed negotiations on the landmark India-EU Free Trade Agreement (FTA) on Tuesday. This announcement marks a historic turning point in India and the EU’s economic relations and trade relations with key global partners.
Documents regarding the signing of the agreement were shared between EU Trade Commissioner Maros Sefcovic and Union Trade Minister Piyush Goyal. The free trade agreement between India and the EU, first launched in 2007, is expected to underpin a broader economic and strategic partnership as global trade dynamics change.
Importance of India-EU trade deal
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The European Union is one of India’s largest trading partners and bilateral trade in goods and services has been increasing steadily over the years.
In 2024-25, India’s bilateral trade in goods with the EU stood at 11.5 Lakh Crore (US$ 136.54 billion); Exports worth 6.4 Lakh Crore (US$ 75.85 billion) and imports amounted to 5.1 Lakh Crore (US$ 60.68 billion). India-EU services trade reaches 7.2 Lakh Crore (US$ 83.10 billion) in 2024.
The India-EU trade deal sends a “strong message” that cooperation is the key solution to global challenges, European Commission President Ursula von der Leyen said at a briefing on Tuesday.
“…This is a story of two giants. The world’s second and fourth largest economy, two giants who chose partnership in a true win-win way. A strong message that cooperation is the best answer to global challenges,” he said.
#IndiaEUTradeDeal EU President: A strong message that cooperation is the best response to global challenges @vonderleyen pic.twitter.com/FRrS4u5O0G— Piyush Goyal (@PiyushGoyal) January 27, 2026
Trump trade tariffs
US President Donald Trump’s tariffs have increased global uncertainty in trade and diplomacy and hence this India-EU free trade agreement is more important for both India and EU.
According to The Guardian’s report dated September 10, 2025, Trump asked the EU to impose customs duties of up to 100 percent on India and China. This was reportedly part of an effort to end the Russia-Ukraine conflict.
Trump expressed these demands at the meeting between EU and US officials.
Also Read – India-EU improving ties: Why New Delhi could be the ‘perfect’ partner for Europe | ANNOUNCED
Scott Bessent’s reaction to India-EU deal
US Treasury Secretary Scott Bessent accused European countries of indirectly financing the Russia-Ukraine war by purchasing oil products refined in India using Russian crude, even as Washington imposed tariffs on New Delhi over its energy ties with Moscow.
Speaking to ABC News on Sunday, Bessent defended the Trump administration’s decision to impose high tariffs on Indian imports, arguing that Europe’s ongoing energy-related trade conflicts with its stated security posture, according to ANI.
“We imposed a 25 percent tariff on India for the purchase of Russian oil. Guess what happened last week? Europeans signed a trade agreement with India,” Bessent said.
“And just to be clear again, Russian oil is going to India, refined products are coming out, and Europeans are buying refined products. They are financing the war against themselves,” he added.
Bessent said the United States has imposed punitive tariffs and pressured to divest from Russian energy, while European governments continue to exploit what he described as gaps in the global oil supply chain.
India-US tariff
Previously, the Trump administration had imposed tariffs of up to 50 percent on Indian goods, including a 25 percent duty directly tied to India’s Russian oil imports.
These measures were doubled in August, further escalating trade tensions between Washington and New Delhi.
However, Bessent reportedly stated that a tariff reduction could be considered.
(with ANI entries)
