India has pulled off what many are calling the “mother of all trade deals.” The India–European Union Free Trade Agreement is set to redraw global trade equations, boosting India’s competitiveness while placing rival exporters under pressure.
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Under the deal, tariffs on more than 90 percent of EU exports to India will be eliminated or sharply reduced, including steep duties on machinery, chemicals and pharmaceuticals. In return, Indian textiles and apparel gain zero-duty access to European markets from day one, a major breakthrough for India’s manufacturing sector.
The impact is already being felt across South Asia and beyond. Pakistan, long dependent on preferential access under the EU’s GSP Plus scheme, now faces eroding competitiveness and potential job losses in its textile industry. Bangladesh’s garment sector, built on zero-duty EU access, risks losing market share as Indian exports gain pricing and quality advantages.
Turkey, bound by its customs union with the EU, must cut tariffs for India without receiving reciprocal benefits, squeezing its exporters further.
More than a trade pact, the India–EU deal signals a strategic shift. India is no longer playing catch-up. It is setting the rules.
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