India-EU Trade Deal
India has emerged as a key beneficiary in a landmark trade agreement with the European Union, according to US Trade Representative Jamieson Greer. Announced on January 28, 2026, the deal grants India increased market access for its low-cost goods and potential immigration rights to the EU, offering significant economic opportunities.
In a televised interview, Greer highlighted the strategic benefits for India, noting, ‘They get more market access into Europe. It sounds like they have some additional immigration rights.’ EU President Ursula von der Leyen has emphasized the mobility of Indian workers as a crucial part of the agreement.
The agreement marks a shift in EU’s trade dynamics, as Europe seeks to address its overproduction challenges by turning to India, a nation with abundant low-cost labor. This development is welcomed by leaders across Europe, including Czech Prime Minister Andrej Babis and Irish Prime Minister Michael Martin, who see it as a boost to their economies.
While the EU-India deal progresses, US-India trade relations face hurdles due to Washington’s 25% tariff penalty on Indian goods linked to Russian oil purchases. Despite India’s efforts to reduce Russian oil imports, US sanctions remain a point of contention.
The broader geopolitical landscape is complex, with US trade negotiations with both the EU and India experiencing difficulties. However, significant progress has been made in the India-US talks, with a potential bilateral agreement on the horizon. As both sides work towards finalizing this deal, the outcome could reshape trade relations across continents.
Published in SouthAsianDesk, January 29th, 2026
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