Good morning, The Free Trade Agreement (FTA) between India and the European Union was nearly two decades in the making. On Wednesday, both sides announced the conclusionof talks for what they called a “new blueprint” and the “mother of all deals”.
Indeed, this is the most comprehensive trade deal India has ever signed. The two sides were on the cusp of a deal back in 2013, but couldn’t get past sticky issues and political headwinds at home. This time, the chaos unleashed by US President Donald Trump’s tariffs added urgency. Besides Washington’s protectionism, major geo-economic shifts also helped India and the EU reevaluate their negotiating positions. Ravi Dutta Mishra explains.
India and the EU firmed up 13 outcomes at the bilateral summit, including a security and defence partnership, a mobility framework, and a five-year comprehensive strategic agenda.
Here’s what you should know:
Trade-off: After the pact is vetted and ratified, duties on 99.5 of Indian exports will face zero duties in the EU, and 97% of tariffs on EU goods, including cars and wine, will be reduced or eliminated. For India, this means that its labour-intensive sectors, such as textiles and footwear, will be at par with competing countries, particularly Vietnam. For the EU, motor vehicles will face a significantly reduced tariff, down from 110% to just 10%. More details here.
Challenge: India managed to clear one of the biggest hurdles: Europe’s carbon border adjustment mechanism (CBAM), which imposes a carbon tax on imports. India will receive the same concessions that the EU has promised the US under their deal last year. However, the EU’s ever-expanding regulatory regime could remain India’s biggest challenge.
A smorgasbord of pacts: The two sides have also envisioned a new framework to facilitate easy movement of Indian students, workers and professionals across the 27 EU member countries. They agreed to deepen ties in maritime security, defence industry, and countering cyber threats, among others. They will also work together on building tech infrastructure.
A shift: Among the pacts, a joint statement by India and the EU also signalled a subtle shift in India’s stance on Ukraine. The statement says they will support efforts towards peace in Ukraine based on principles of “independence, sovereignty and territorial integrity”, which goes against Russia’s interests. On Gaza, the two sides called for “a just and lasting solution, based on the implementation of the two-State solution”.
On that note, let’s get into the rest of today’s edition👇
⚡Only in Express
The global uncertainties unleashed by the US tariffs have pushed New Delhi to expand global ties and seek newer markets. But how does one make sense of the current India-US ties? How can India navigate America under Trump? American economist and public policy analyst Jeffrey Sachs, a professor at Columbia University, speaks to Anant Goenka, Executive Director, The Indian Express Group, about all this and more. Read.
📰 From the Front Page
Backlash: The University Grants Commission recently notified “equity regulations” for higher education institutes to “eradicate discrimination” based on religion, race, gender, place of birth, caste or disability. However, they have sparked protests, mostly on social media, with a section of people claiming that they could be used to “harass” general category students and can create caste-based divisions. Take a closer look at the controversy.
The protests have put the BJP in a spot as it courts the OBCs and Dalits, while counting the upper castes as its natural base. Addressing the backlash, Union Education Minister Dharmendra Pradhan has asserted that no one would be allowed to misuse the provisions and that “discrimination will not be allowed against anybody”.
📌 Must Read
Road to 2029: 2026 could be the Opposition’s year, writes columnist Neerja Chowdhury, if it plays its cards right. The BJP has quickly shifted focus to the poll-bound Kerala and Tamil Nadu, seeking to expand its footprint in the South. However, the DMK in Tamil Nadu and the principal challenger in Kerala, the Congress party, seem well-placed. In West Bengal, too, Mamata Banerjee won’t concede ground so easily. What’s at stake, and who could come out on top? Read Chowdhury’s column.
⏳ And Finally…
From Cambodia to Bihar: Some 2,000-odd people live in the entire region of Bihar’s Narayanpur, according to the 2011 Census. But in two days alone in July 2025, some 20,000 calls went out from the area, tipping off the Telecom Department. Turns out, a house in Bhaluni, a small village in the region, was helping run a cyber fraud, originating from Cambodia and Thailand, using an illegal SIM network to reroute international calls. Himanshu Harsh brings you all the details.
🎧 Before you go, do tune in to the latest ‘3 Things’ podcast episode. Today’s lineup: Protocols for Vande Mataram, a new BSL-4 lab in Gujarat, and caste-based violence in Jharkhand.
That’s all for today, folks! Until tomorrow, Sonal Gupta
Business As Usual by EP Unny