“People around the world are discussing it as the ‘Mother of All Deals’. This agreement has brought massive opportunities for 1.4 billion Indians and millions of people in European countries. It has become a wonderful example of synergy between two of the world’s major economies. This agreement represents approximately 25% of global GDP and about one-third of global trade,” Modi said.

“…this trade deal will not only boost manufacturing in India but also further expand sectors related to services. This free trade agreement will further strengthen confidence in India for every business and investor in the world,” the Prime Minister said.

Modi said that along with trade, the India-EU trade deal also strengthens India and the EU’s shared commitment to democracy and rule of law.

Official-level negotiations for the trade deal have been wrapped up and both sides are set to announce the successful conclusion of talks today at the India-EU Summit in Delhi. The formal signing of the agreement would take place later this year after legal scrubbing of the agreement is completed. This assumes significance as the trade deal has been decades in the making — the talks first started in 2007 but were abandoned in 2013 due to differences in market access for automobiles.

“After subsuming a few chapters, India and the EU have completed talks on 21 chapters. While the legal scrubbing of the deal would take four to five months, the trade deal will come into effect by early next year after being ratified by the European Parliament,” an official said on Monday.

The trade agreement is expected to be among the most comprehensive deals that India would sign, which could benefit India’s labour-intensive sectors, ranging from marine products, textiles, footwear and sports goods. India is also likely to open its automobile and alcoholic beverage sectors, given the EU’s strong interest in the areas.

The India-EU talks had gathered urgency amid dramatic shifts in American trade policies that have forced trade partners globally to scout for newer markets. While India is facing steep 50 per cent tariffs, the EU continues to face the risk of higher US tariffs despite a trade deal with Washington due to its tech regulations and differences over Greenland.

A key driver of the trade deal has also been the shared challenge of China. Indian industry has been encountering pricing challenges, especially while trying to scale up the solar energy sector. The EU is concerned about China’s dominance in critical technologies, as China holds a leading global manufacturing position in several areas, exposing the EU to potential risks.-Agencies