What's in the EU-India "Mother of All Deals"?

Touted as the "mother of all deals" by European Commission President Ursula von der Leyen, the EU-India trade agreement was a long time in the making before being finalized quickly at the end of January among the current global trade tensions. Due to its back story starting in 2007, the deal is one of the biggest trade agreements ever negotiated, rated by analysts at the Kiel Institute for the World Economy as being mutually beneficial to the countries involved.

This is in stark contrast to the U.S.-India trade deal announced February 2, of which fewer details are already known but which is expected to be a rather limited agreement consisting of India making concession in order to lower U.S. tariffs. Therefore, the agreement similar to other recent U.S. trade deals under U.S. President Donald Trump was rated more on the side of harm mitigation than growth for India.

While this is clearly different concerning the EU deal, the details might also not be so clear cut. While India exported $58 billion worth of goods to the EU in 2024, the EU already sent products worth $84 billion the other way. Now, this number is supposed to increase by 41 percent for India, but an even higher 65 percent for the EU. The bloc also negotiated its highly sought after market entry for more European cars into India as well as getting a foot in the door for certain food products and drinks, machinery, chemicals and cosmetic – some of which were subject to sky-high Indian tariffs before.

In return, India is gaining better access to the EU for its textiles and apparel products, chemicals, seafood and gems, but hurdles there were generally lower before. India is additionally receiving assistance on climate change topics and mobility improvements for students and skilled workers and is hoping to get some relief on the EU Carbon Border Adjustment Mechanism next, which levies dues on international imports that are carbon-intensive. However, the immense trade prowess of the EU and the growing Indian markets are sure to hand some wins to the bloc which India might be less sure to achieve. India was also seen under immense economic pressure recently due to very high U.S. tariffs.