Both sides are \u2018set to benefit\u2019 from the deal that analysts say will underscore broader shifts under way in the global order.<\/b>
\nIndia and the European Union on Tuesday announced a long-awaited free trade agreement that Prime Minister Narendra Modi described as the \u201cmother of all deals\u201d, as both sides moved to strengthen economic ties in a global trade order unsettled by rising US protectionism.
The pact, once implemented, is expected to create one of the world\u2019s largest trading blocs and deepen commercial links between the EU\u2019s 27 member states and the world\u2019s most populous country.
The deal would cut or eliminate tariffs on almost 97 per cent of European exports to India, saving up to \u20ac4 billion (US$4.75 billion) a year in duties, the bloc said.
\u201cPeople around the world are calling this the mother of all deals,\u201d Modi said. \u201cThis deal will bring many opportunities for India\u2019s 1.4 billion people and many millions in the EU.\u201d
The agreement \u201crepresents about 25 per cent of global GDP and one-third of global trade\u201d, Modi added.
European Commission President Ursula von der Leyen said the agreement marked a historic step in bilateral ties.
\u201cEurope and India are making history today,\u201d she said in a statement, a day after she and European Council President Antonio Costa were guests of honour at India\u2019s Republic Day parade.<\/p>\n