It took more than twenty years, with pauses, deadlocks, and setbacks. But this time, it’s done: the European Union and India have concluded a free trade agreement of unprecedented scale. Announced on January 27, the deal was greeted with strong words: “historic,” “the deal of all deals,” “a clear choice of partnership.” Behind the enthusiasm, one fact stands out: in an increasingly conflictual world, Europe and India have decided to bet on each other.

The stakes match the numbers. Together, the EU and India represent nearly 2 billion people, about a quarter of global GDP, and a third of international trade. Trade between them is already substantial: €120 billion in goods and €60 billion in services in 2024. But both sides aim to go much further.

At the heart of the agreement is a simple goal: removing customs barriers, especially on the Indian side. The Indian market is known to be one of the most protected in the world. In the future, tariffs on European cars would drop from 110% to 10%, and those on wine from 150% to 20%. Everyday products, such as pasta or chocolate, would enter duty-free. For European companies, Brussels estimates a potential gain of €4 billion per year.

In return, Europe is opening its doors further to Indian textiles and pharmaceuticals, two key sectors for New Delhi. The message is clear: each side is leveraging its strengths. The EU sees in India a vast, young, and rapidly growing market, poised to become one of the world’s leading economic powers. India, meanwhile, is seeking investments, technology, and industrial partnerships to accelerate modernization and create large-scale employment.

But this agreement is about more than trade. It comes at a time of geopolitical tension. Amid the U.S. trade war, rivalry with China, and fragile supply chains, both partners are seeking more stable alliances. The deal also includes provisions on the mobility of skilled workers, academic exchanges, and a partnership on security and defense.

By signing this agreement, the EU and India are making a deliberate bet: openness in a world that is increasingly closing in. The challenge now is to turn promises into tangible results and to manage the imbalances that such a deal inevitably creates.