EU, India Sign Mother Mega Accord to Unlock Historic Trade Growth
The European Union and India have agreed on the Mother Mega Accord, a historic economic partnership. The deal creates a shared market serving nearly two billion people worldwide. Leaders announced the agreement after nearly 20 years of discussions.
As a result, both sides aim to strengthen economic security and future growth.
Prime Minister Narendra Modi met top European leaders in New Delhi.
During the meeting, officials called the agreement transformational and forward looking.
Why This Agreement Matters
The partnership links two major economic regions. Together, they account for roughly one quarter of global output and one-third of worldwide commerce. European leaders say the pact offers long term stability.
However, it also helps both sides manage pressure from other global powers.
According to EU officials, businesses will gain early access to new opportunities.
Therefore, companies can expand faster in emerging and established markets alike.
Lower Duties and Wider Access
The agreement removes or reduces duties on nearly all European goods.
As a result, exporters may save billions of euros every year. Vehicle levies will fall sharply over time. Similarly, charges on wines and processed foods will also decline.
In addition, European firms will enter India’s financial and shipping sectors more easily.
This access marks the highest level ever offered by India to any partner.
Big Gains for India and Europe
India expects strong growth in textiles, jewellery, leather, and services. Meanwhile, Europe looks to boost agriculture, cars, and advanced services. Trade in goods and services has already surged over the past decade.
Therefore, leaders expect volumes to rise even faster under the new framework. Negotiators resolved final hurdles just before the announcement. For example, both sides addressed concerns around environmental trade measures.
