India and the European Union have signed a comprehensive trade pact after almost twenty years of intermittent negotiations, promising to slash tariffs on goods, including chemicals, machinery, aircraft and automobiles, and to open up markets for both sides. The agreement, described by EU Commission President Ursula von der Leyen as the "mother of all deals" and by Indian Prime Minister Narendra Modi as "historic", will reduce import duties, especially on high‑tariff products such as cars, from up to 110% to 10% on a quota of 250,000 vehicles per year. Sensitive agricultural sectors such as dairy and sugar will remain excluded. The pact is expected to lower costs for European goods in India, boost investment, and strengthen supply‑chain integration, providing India with a counter‑balance to U.S. tariff pressures. While the signing is a milestone for bilateral trade, leaders also signaled progress on security, defense and climate cooperation.

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