India and the European Union have finalized a landmark free trade agreement after almost twenty years of intermittent negotiations, Prime Minister Narendra Modi announced on Tuesday. The deal, reached amid global uncertainty surrounding the United States, aims to strengthen alternative economic and strategic ties between the two sides. It will open India’s large and relatively protected market to the 27 EU member states, while the EU remains India’s largest trading partner.

Modi described the agreement as a major breakthrough, calling it the “mother of all deals” that will create new opportunities for India’s 1.4 billion people and millions across Europe. He and European Commission President Ursula von der Leyen are expected to present the details at the India–EU summit in New Delhi. In the 2024–25 fiscal year, bilateral trade between India and the EU reached 136.5 billion dollars.

According to an Indian government official, the agreement is now undergoing legal review, expected to take five to six months. Once completed, it could come into effect within a year of formal signing.