India and the European Union have finished a big trade agreement. It is called the "mother of all deals." This deal took almost 20 years to complete. It will change trade between them. It also creates a strong security and defense partnership. This is important because the world is changing.
The announcement happened in New Delhi. It is a very important step. The agreement aims for closer economic ties. It will create a free trade zone. This zone will have two billion people. It will also be a quarter of the world's economy. EU exports to India are expected to double by 2032. India has a fast-growing economy.
This agreement helps both sides. The EU wants to trade with more countries. It does not want to rely only on the United States or China. Working with India is important for the EU's future. India wants to be seen as more open for business. It also wants to increase its influence globally. The goal is more stability and success through working together.
The trade rules are very detailed. India will lower or remove taxes on many EU products. The EU will also remove taxes on most Indian goods. This will happen over seven years. EU car makers will be able to export more cars. India will also lower taxes on European wine and olive oil. Taxes on many industrial products will be removed. India will also give special access to its exports to the EU. The deal also covers services and helps professionals move between countries.
However, some areas are protected. India will keep its dairy and cereal markets safe. The new security and defense partnership is also important. It shows they want to keep the region stable. They will work together on military production. They will also share secret information. This agreement makes the India-EU relationship much stronger. It will help businesses, shoppers, and global stability.