The European Union and India concluded negotiations on Tuesday for a historic free trade agreement, the largest trade pact ever signed between the two parties.

The agreement will strengthen economic and political ties between the EU and India, in the context of geopolitical tensions and global economic challenges. According to the European Commission, the pact creates a free trade area, providing significant economic benefits to both parties. The EU and India already trade goods and services worth over 180 billion euros a year, supporting nearly 800,000 jobs in the EU.

The agreement will eliminate or reduce tariffs for approximately 96.6% of EU goods exports to India, which could lead to a doubling of EU exports to India by 2032. The tariff reductions are estimated to generate savings of about 4 billion euros a year for European companies.

Officials say this represents the most ambitious trade opening ever made by India to a partner, providing significant access for European industrial and agri-food sectors to the vast and rapidly growing Indian market.