New Delhi, Jan 27 (NationPress) Prime Minister Narendra Modi announced on Tuesday that a free trade agreement (FTA) has been signed between India and the European Union. He emphasized that this historic collaboration between these two significant economies will pave the way for fresh opportunities for businesses, consumers, and skilled professionals.

During a joint press briefing at Hyderabad House alongside European Commission President Ursula von der Leyen, PM Modi pointed out that this agreement, which is the largest in India's history, signifies an increasing level of trust, mutual values, and a unified dedication to peace, stability, and collaboration amid a volatile global landscape.

As part of this agreement, tariffs on over 90% of EU products exported to India will either be eliminated or significantly reduced. This includes high duties of up to 44% on machinery, 22% on chemicals, and 11% on pharmaceuticals, which will predominantly be phased out.

Additionally, tariffs on EU beer are set to be reduced to 50%, while duties on chemicals, aircraft, and spacecraft will be eliminated for nearly all products.

The European Union anticipates that this deal could potentially double EU exports to India by 2032, yielding annual duty savings of up to 4 billion euros on European goods.

The EU represents almost 17% of India's total exports, providing Indian businesses with a vast market to access more easily through the FTA.

The trade agreement also includes a commitment of 500 million euros from the EU over the next two years to assist India in reducing greenhouse gas emissions and expediting the green transition. EU exports to India currently support approximately 800,000 jobs in Europe, and the agreement is expected to create many additional positions.

The EU stated that this agreement will significantly enhance exports to the Indian market and strengthen economic connections during a tumultuous global trading environment. The pact encompasses economies with a combined population of nearly 2 billion.

Furthermore, India and the European Union have also established a mobility agreement aimed at facilitating the movement of Indian students, workers, and professionals across EU nations.

Von der Leyen remarked on the successful conclusion of the FTA, referring to it as the 'mother of all deals'. She noted, 'This is just the beginning. We will further strengthen our strategic partnership.'

In a separate development, the summit between the two parties also initiated an EU-India Security and Defence Partnership.