New Delhi Reuters —India and the European Union have finalized a long pending landmark trade deal, Indian Prime Minister Narendra Modi said on Tuesday, as the two sides seek to hedge against fickle ties with the US. Trade between India and the EU stood at $136.5 billion in the fiscal year through March 2025. Flurry of trade dealsThe agreement comes days after the EU signed a pivotal pact with the South American bloc Mercosur, following deals last year with Indonesia, Mexico and Switzerland. An India-US trade deal collapsed last year after a breakdown in communications between their two governments. For India, the tariff cuts with the EU will lead to more exports in labor intensive sectors that will help partly offset the impact of US tariffs, said Ajay Srivastava, a former Indian trade official.

Source: Egypt Independent January 27, 2026 15:37 UTC