A New Era in Global Trade

India and the EU announce the ‘mother of all trade deals’ but what does this mean for C-suite leaders?

On 27^th January 2026, the “Mother of all trade deals” was signed between the European Union and India after nearly 20 years of negotiations. Covering a combined market of around two billion people and roughly a quarter of global GDP, it is one of the most significant trade deals of the past decade.

For C-suite leaders, this is not just a geopolitical milestone. It has direct implications for growth strategy, opportunities for talent deployment supply chains, investment decisions and leadership priorities over the coming years. Dorota Cagiel from our New Delhi office explores the significance of this trade deal in the article below.

What the Deal Actually Changes

Executives are currently navigating an era of geopolitical tension and tariff unpredictability; the EU-India pact provides a significant counterweight to existing trade dependencies. This diversification can reduce geopolitical risk exposure and open alternative channels for growth.

At its core, the agreement significantly lowers barriers to trade on both sides. Most EU exports to India will see tariffs sharply reduced or eliminated over time, while the EU will also cut duties on the majority of Indian exports, supporting two-way trade in manufacturing, pharmaceuticals, textiles, consumer goods, and more.

Tariff changes on goods include:

• Automotive tariffs currently sitting at 110% will reduce to 10% under a quota of 250,000 vehicles,
• For machinery 50% of duties will be removed immediately when the trade deal starts and the other 50% will be phased out over a period of 10 years,
• Chemicals with current tariffs of up to 22% to be removed when the trade deal starts,

Tariff changes on services include:

• Include provisions on mobility of professionals, which are in line with the most-ambitious ones that each party has committed in the past.
• Greater alignment on customs procedures, intellectual property, and technical standards.

Another area of positive development in the EU - India FTA is that it contains provisions regarding the relevant UN and ILO conventions advancing women’s economic empowerment and gender equality, including promoting cooperation in international force to advance these objectives.

For the C-suite leader, global operations must be reassessed and India’s role in European-led value chains must be re-evaluated. Leaders must consider integrating tariff reductions into pricing and commercial strategies, strengthen regulatory and compliance capabilities, and invest in local partnerships to accelerate market entry and execution.

Looking ahead, timing and governance remain important. Implementation will be phased and still requires approvals, with some sensitive sectors still protected and global trade tensions continuing to influence competitiveness. Even so, the deal represents a structural shift in EU–India economic relations, and early movers will be best positioned to translate policy change into lasting advantage.