FTA deal to make European wines more affordable in India

According to a statement from the EU, the agreement removes or reduces tariffs that have often been prohibitive, averaging over 36% on EU agri-food exports. Indian tariffs on wines will be cut from 150% to 75% at the entry into force, eventually reaching levels as low as 20%.

Tariffs on olive oil will fall from 45% to zero over five years, while processed agricultural products, including bread and confectionery, will see reductions of up to 50%.

The deal was announced in the presence of Prime Minister Narendra Modi and European Commission President Ursula von der Leyen.

Described by officials as the “mother of all trade deals,” the FTA aims to reduce or eliminate tariffs on more than 90% of traded goods, expand market access, and deepen economic integration between India and the EU.

Signed nearly two decades after negotiations began, the agreement is expected to significantly benefit Indian farmers and small businesses amid global trade uncertainties and geopolitical tensions.

“This historic agreement will grant Indian farmers and small businesses easier access to European markets. It will create new opportunities in manufacturing and further strengthen cooperation in the services sector,” Modi said at a press conference.

He added, “This FTA is set to boost investment between India and the EU, foster innovation partnerships, and enhance global supply chains. This agreement is not just about trade—it represents a blueprint for shared prosperity.”

The FTA is being seen as strategically crucial as India seeks to diversify trade partnerships beyond traditional markets while strengthening ties with the EU, one of its largest trading partners.