Could this India‑EU deal really change how India trades with Europe?

The India‑EU free trade agreement is being called a “mother of all deals” because it cuts duties on more than 90% of EU goods entering India and aims to almost double European exports to India by 2032. The deal covers big‑ticket areas such as aircraft, machinery, chemicals, pharmaceuticals, food items, and alcoholic drinks, so European companies will find it far cheaper to sell in India.

On the aircraft and aerospace side, almost all tariffs on EU‑made planes, aircraft parts, and spacecraft will be eliminated, which will make it easier for Indian airlines and defence buyers to source equipment from Europe. Machinery imports from the EU will also become cheaper because duties that once ran as high as 44% are now mostly phased out, opening doors for German and other European industrial gear in sectors like auto, steel, and power.

Alcohol and food tariffs will soften a lot, with beer duties cut to around 50%, spirits to about 40%, and wine to 20–30%, while items like olive oil, margarine, fruit juices and many processed foods will see tariffs removed. Alongside trade, the EU is planning to give India around 500 million euros over two years to support climate‑friendly projects and emissions‑cutting efforts, so this is not just a market‑access deal but also part of a broader India‑EU climate and technology partnership.