In a world of rising tariffs and fractured supply chains, India and the European Union have delivered rare good news. On January 27, both sides unveiled a landmark Free Trade Agreement, ending over a decade of stalled talks and deepening ties between two major global markets representing nearly a quarter of world output.

The timing is strategic. With U.S. trade uncertainty growing, India and Europe are diversifying partnerships. Revived in 2022 with backing from Prime Minister Narendra Modi and EU chief Ursula von der Leyen, the deal could expand $136 billion trade, cut costs, and boost long-term investment.

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