India and the European Union have announced a long-awaited free trade agreement, closing negotiations that stretched across almost two decades and resetting commercial ties between New Delhi and Brussels at a time of heightened global trade friction. The accord, unveiled after months of accelerated talks, is being closely scrutinised in Washington, where the Donald Trump administration has signalled unease that the deal could tilt competitive advantage towards India by granting it deeper access to European markets.Speaking shortly after the announcement, United States Trade Representative Jamieson Greer said the agreement appeared to open the European Union more decisively to Indian exports while offering fewer reciprocal gains for European firms in sensitive sectors. Greer remarked that India was “going to have a heyday” once the pact comes into force, reflecting concern within the administration that European concessions could undermine American exporters already facing tougher trade conditions globally.
The agreement between India and the European Union covers goods, services, investment protection, digital trade, intellectual property and sustainability commitments. Officials on both sides described it as one of the most comprehensive trade frameworks either party has concluded, with phased tariff reductions across a wide range of industrial and agricultural products. The European Union has highlighted improved access for automobiles, wines and spirits, medical devices and professional services, while India has emphasised greater market entry for textiles, pharmaceuticals, engineering goods and information technology services.
For New Delhi, the deal is viewed as a strategic economic milestone. The European Union is among India’s largest trading partners, and officials have long argued that preferential access to the bloc’s single market would support manufacturing expansion, export growth and job creation. Commerce ministry officials said the agreement aligns with domestic production incentives and broader efforts to integrate India into global supply chains shifting away from excessive concentration in a single geography.
European leaders, for their part, framed the pact as a response to changing geopolitical realities. With supply chain resilience now a priority and relations with major economies under strain, Brussels has been seeking to diversify trade partnerships. India’s large consumer base, growing middle class and expanding digital economy have made it an increasingly attractive counterpart. European Commission officials stressed that the agreement includes safeguards on labour standards, environmental protection and dispute resolution mechanisms intended to ensure balanced outcomes.
Washington’s reaction underscores a more complex backdrop. The Trump administration has revived a more transactional approach to trade, pressing allies and partners to address what it sees as persistent imbalances. Officials have expressed frustration with both the European Union and India over tariffs, regulatory barriers and digital policies affecting United States companies. Against that context, a major bilateral pact between two large economies, concluded without United States involvement, has sharpened concerns about relative competitiveness.
Greer’s comments echoed broader apprehension among American manufacturers and farm groups, who argue that preferential tariff treatment for Indian goods in Europe could displace United States exports in sectors such as chemicals, machinery, processed foods and certain consumer products. Trade analysts noted that while the impact will depend on detailed tariff schedules and rules of origin, the perception of India gaining an edge in Europe has political resonance in Washington.
Indian officials rejected suggestions that the deal unfairly favours one side. They said negotiations were marked by tough bargaining and mutual compromise, pointing to commitments on government procurement transparency, intellectual property protections and regulatory cooperation that European negotiators had sought for years. New Delhi has also maintained that it preserved policy space in agriculture and public services, areas that have been politically sensitive domestically.
Within Europe, business groups broadly welcomed the agreement but cautioned that implementation will be critical. Industry associations said clarity on standards, certification and dispute settlement would determine whether promised market access translates into tangible commercial gains. Some farming lobbies raised concerns about competition from lower-cost imports, prompting assurances from European officials that safeguard clauses are built into the framework.