India-EU trade deal: “Its Mother of All Deals,” says Piyush Goyal
Virendra Pandit
New Delhi: Days after German Chancellor Friedrich Merz indicated that the much-awaited India-European Union trade deal is likely in the coming weeks, Commerce and Industry Minister Piyush Goyal on Friday said it would be the “mother of all deals.”
Since 2014, India has finalized seven trade agreements.
The proposed India-EU free trade agreement (FTA) would be a balanced and mutually beneficial trade pact, he said, according to the media reports.
Bilateral trade between the two sides is reasonably balanced in goods and services. It will also be a “super deal” for Indian export sectors, he said.
Union Commerce Secretary Rajesh Agrawal on Thursday said India and the EU are “very close” to concluding negotiations on the proposed FTA.
Discussions are underway to resolve remaining issues so that the deal is ready for announcement during the visit of top EU leadership later this month.
President of the European Council, António Luís Santos da Costa, and President of the European Commission, Ursula von der Leyen, will be the chief guests at the 77th Republic Day celebrations, signalling New Delhi’s deepening strategic and economic engagement with Europe.
During his recent two-day visit to India, German Chancellor Friedrich Merz indicated that the European Union and India could sign a landmark FTA by the end of January, which could reshape global trade ties as protectionism rises and US-India talks remain stalled.
Top EU leaders would travel to India to seal the deal if negotiations wrap up in time, Merz told reporters in Ahmedabad on Monday after meeting Prime Minister Narendra Modi.
“In any case, they will take another major step forward to ensure that this FTA comes into being,” Merz said during his first trip to India since becoming chancellor.
A trade deal, under discussion for years, is seen as a chance for both sides to strengthen economic ties and cut reliance on China and Russia. Bilateral trade between India and the EU totalled 120 billion euros (USD 140.21 billion) in 2024, making the bloc India’s biggest trading partner.
Talks have gathered pace since the United States, under President Donald Trump, raised tariffs on Indian goods and pressured New Delhi to stop buying Russian oil.
A separate India-US trade deal collapsed in 2025 after a breakdown in communication between the two governments. However, the new US Ambassador to India, Sergio Gor, recently indicated resumption of trade talks for the proposed bilateral trade agreement (BTA), inclusion of India into the Pax Silica drive, and that “no partner is more essential than India,” showed that the frostiness in India-US relations could end soon.
The proposed EU-India pact would follow on the heels of the European Union’s recent agreement with South America’s Mercosur group and support Europe’s push to build new trade networks as global rules shift.
The EU is pushing for steep tariff cuts on cars, medical devices, wine, spirits and meat, along with stronger intellectual property rules, while India is seeking duty-free access for labour-intensive goods and faster recognition of its growing autos and electronics sectors. Disputes over steel, carbon levies and market access would need further compromise.
Germany and India signed agreements on minerals, healthcare and artificial intelligence during Merz’s visit.
Germany, which relies on India as a growing market, is also urging New Delhi to reduce its dependence on Russian energy and arms. India still works closely with Russia, where much of its military equipment originates, on security policy, and it is one of the largest buyers of Russian gas and oil alongside China.
“We are in complete agreement in our assessment of Russia’s war of aggression against Ukraine,” Merz said. At the same time, he understood how dependent India still is on Russian oil and gas. “Obviously, it is not that simple in India, and I am the last person to visit other countries wagging my finger at them.”
Merz chose India for his first Asian trip as chancellor, highlighting a shift in strategy among European leaders, who previously focused on China.
He said the world is experiencing “a renaissance of unfortunate protectionism” that harms Germany and India. He did not name any countries.
While the United States has imposed tariffs on trading partners, China introduced export controls on minerals used in key areas such as autos, causing months of supply chain disruption last year due to the U.S.-China trade war and affecting German carmakers.
