The European Union and India have finalized a landmark trade agreement after nearly two decades of negotiations. The deal, dubbed the "mother of all deals," aims to boost ties amid growing global economic and geopolitical pressures. It will encompass tariff reductions across various sectors, impacting a market of two billion people and representing nearly 25% of global GDP.

This agreement will facilitate free trade of goods and services between the EU's 27 member states and India. Significant tariff cuts will apply to numerous products, including chemicals, machinery, and electrical equipment. Duties on motor vehicles will also be reduced. The deal will also encourage investment flows and improve access to European markets for Indian goods, which is a major win for India.

India will gain preferential access to EU markets for its exports, including textiles and gems. The agreement also includes a mobility framework to ease travel restrictions for professionals. This deal is occurring as both India and the EU navigate economic and geopolitical tensions, specifically with the United States. Formal signing is expected later this year.

Beyond trade, India and the EU are advancing discussions on security, defense, and climate action. The EU is already India's largest trading partner in goods. With the deal, both sides hope to strengthen their economic cooperation, which could help labor-intensive sectors in India and provide the EU with more security in an increasingly turbulent global environment. What specific regulatory hurdles will be faced?