The European Union and India have agreed to a monumental free trade deal for nearly all goods, marking one of the most expansive trade agreements either side has signed in years, and signaling a major step toward deepening economic ties between the two economies.

Described by European Commission President Ursula von der Leyen as "the mother of all deals," the agreement will eliminate tariffs on more than 90% of goods traded between the EU and India, including chemicals, cosmetics, plastics, auto parts, textiles, ceramics, machinery and boats. It will also get rid of duties on a handful of key European agri-food exports, from olive oil and fruit juices to pastries and pet food.

"This is a tale of two giants – the world's second- and fourth-largest economies," von der Leyen said in remarks delivered at a joint press conference with Indian Prime Minister Narendra Modi on January 26. "Two giants who choose partnership, in a true win-win fashion."

The deal also includes a framework agreement for defense and security cooperation between India and the EU, while providing better mobility for students and researchers, as well as seasonal and skilled workers. The deal will next undergo legal review and ratification, which will include approval by the European Parliament and India’s cabinet, with the exact timeline depending on whether it requires additional approval from EU member states.

EU officials framed the agreement as a strategic necessity to counteract growing geopolitical and supply chain volatility, particularly as Trump administration tariffs have rattled economies and strained trade relationships with key partners across the globe. In her remarks with Prime Minister Modi, von der Leyen described a larger goal to "reduce strategic dependencies at a time when trade is increasingly weaponized."

"We are not only making our economies stronger. We are also delivering security for our people in an increasingly insecure world," she said.