Sun Feb 22 13:29:26 UTC 2026: ### EU-India Free Trade Agreement Hailed as “Mother of All Deals”

The Story:

Austria’s State Secretary Alexander Proll has lauded the newly finalized EU-India Free Trade Agreement (FTA) as a “transformative win-win pact” offering significant opportunities for both regions. In an interview, Mr. Proll emphasized the potential for growth in trade, artificial intelligence (AI), and resilient supply chains, describing the agreement as the “mother of all deals” that could benefit nearly 200 crore people and establish one of the world’s largest free trade zones. The agreement, which eliminates or reduces tariffs on a substantial portion of exports between the EU and India, is the culmination of negotiations relaunched in 2022.

Key Points:

  • The EU-India FTA is described as a “transformative win-win pact” by Austria’s State Secretary Alexander Proll.
  • The FTA aims to eliminate or reduce tariffs on 96.6% of EU exports to India by value and 99.5% of Indian exports to the EU by trade value.
  • AI is identified as a key area for future collaboration, with a focus on “human-centred AI”.
  • The agreement emphasizes building mutual dependencies in global supply chains rather than isolation.
  • The FTA awaits final legal vetting and ratification by EU institutions and Indian processes, with implementation expected within the next 12 months.
  • Prime Minister Narendra Modi visited Austria in 2024 because of 75 years of the diplomatic relationship

Key Takeaways:

  • The EU-India FTA signifies a major step towards strengthened economic ties between the two regions.
  • The agreement signals a strategic focus on collaboration in emerging technologies like AI.
  • The emphasis on mutual dependencies in supply chains reflects a move away from protectionist policies.
  • The successful negotiation of the FTA after years of effort demonstrates a commitment from both sides to deepen their partnership.
  • The FTA is expected to have a substantial impact on trade and economic growth in both the EU and India.

Impact Analysis:

The EU-India FTA has the potential to reshape the global trade landscape. By creating a massive free trade zone, the agreement could significantly boost economic activity and create new opportunities for businesses in both regions. The focus on AI collaboration suggests a forward-looking approach that could drive innovation and technological advancements. Furthermore, the emphasis on resilient supply chains could help to mitigate disruptions caused by geopolitical events or other unforeseen circumstances. The long-term impact of the FTA will depend on its successful implementation and the ability of both the EU and India to capitalize on the opportunities it presents.

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