India, EU and the art of the deal

After nearly two decades of negotiations, India and the European Union (EU) have finally clinched a sweeping free trade agreement—one that both sides are calling the “mother of all deals”.

The timing matters. With global trade getting more fragmented, this pact is as much about strategy as it is about tariffs.

At its core, the deal throws open massive markets on both sides, while carefully ring-fencing political red lines. Sensitive farm products, dairy, cereals and poultry for India; beef, sugar and rice for the EU stay protected.

But beyond agriculture, the opening is dramatic. Over 99% of Indian exports by value will get preferential or duty-free access to Europe, giving a big lift to labour-intensive sectors such as textiles, leather, gems, marine products and engineering goods. In return, India will steadily lower import duty on most European goods—from machinery and cars to wines and olive oil.

There’s more than trade in goods at play, and we wrote about it in detail:

• Carbon & Steel: The India-EU FTA does not resolve the questions over its contentious carbon tax, but a promised preferential treatment could open up export opportunities in the future. Dipali Banka & Nehal Chaliawala write.
• Luxury cars: The India-EU FTA will allow the likes of VW to BMW to use imports more strategically to introduce newer models and test demand in India, without committing upfront manufacturing. Ayaan Kartik writes.
• Beer & Wine: Indian winemakers are likely to remain unaffected by lower import duty on European wines under the India-EU FTA, Vaeshnavi Kasthuril and Sowmya Ramasubramanian write.
• Food & Beverages: The FTA is set to make high-quality ingredients—olive oil, gourmet cheese, cocoa derivatives, etc.—cheaper for Indians, Sowmya Ramasubramanian writes.
• Medicines: The FTA provides for significant tariff cuts on pharma exports as well as optical, medical and surgical equipment shipped to India from Europe, Jessica Jani writes.

Elsewhere, the India-EU trade deal eases movement for professionals and students, promises deeper services access, and keeps the EU’s carbon border tax outside its legal scope, for now, while opening the door to future cooperation.

As Narendra Modi and Ursula von der Leyen put it, this is about alignment between two major democracies. Read the full report by Dhirendra Kumar and Gireesh Chandra Prasad.

THE MAIN STUFF

To join Trump’s peace board—or not?

US President Donald Trump has unveiled the Board of Peace, pitching it as a new engine for post-war Gaza, and possibly much more.

While some countries signed on, key US allies stayed out. India, invited too, is weighing its options. The concern? A charter that stretches beyond Gaza, a “pay-to-play” power structure, and Pakistan’s seat at the table. But there’s a flip side: Could joining help India shape outcomes, blunt Pakistan’s moves, and extract gains in trade talks with Washington? Read on.

SIPs pass the market stress test

The stock market has gone nowhere for 18 months, and that’s exactly where India’s mutual fund story gets interesting.

Despite muted returns, investors haven’t fled. Assets under management have surged, SIPs keep rolling in, and more money is coming from beyond the big cities.

Why? Discipline. Monthly SIPs are taking timing anxiety out of the equation, while longer holding periods show growing maturity. Even better, investors are choosing low-cost direct plans to boost returns. If this resilience holds in dull markets, what happens when momentum returns? Read more.

Bills to watch beyond Budget 2026

As Parliament’s budget session opens today, the spotlight is on the Finance Bill 2026, but that’s only half the story.

The government is lining up a clutch of reform bills touching everything from bankruptcy and higher education to seeds and road safety. Expect moves on the bankruptcy code, a sweeping overhaul of motor vehicle laws, and a new seed bill aimed at quality and traceability.

For businesses and farmers, will this session deliver faster dispute resolution, safer roads, and cleaner markets? Read on.

A mega deal, a muted market

India’s blockbuster trade pact with the EU barely moved the markets, and that surprised many. After a brief intraday pop, benchmarks ended almost flat, suggesting investors had already priced in the “mother of all deals”.

Experts say this isn’t a miss, just realism. The pact is a long-term export reset, not a one-day trigger. Metals and PSU banks cheered, but broader cues, US trade talks, the rupee, and the Fed still matter. Read more.

Postcard from Panna: Sweat Diamonds

In Panna, hope digs deeper than despair. India’s only diamond-mining district draws people battered by debt, bad luck and broken livelihoods, each chasing a glint that could change everything.

For ₹200 a year, anyone can lease a tiny patch of land and start digging, knowing the odds are brutal and the labour unforgiving. A lucky few strike it rich; most leave poorer than they arrived. Is it faith, folly, or pure desperation that keeps them going? In Panna, every pit holds the same promise—and the same risk. Read on.

NEWS IN NUMBERS

$39 billion: The value of deals in the US leveraged loan market on Monday, after Trump dropped Greenland tariff threats, easing geopolitical tensions.

90%: The percentage of EU goods exports to India set for duty cuts under a landmark trade deal, saving member nations up to 4 billion euros in duties.

₹1,074 crore: The consolidated net profit reported by Asian Paints Ltd. for the December 2025 quarter, down 4.8% year-on-year, impacted by a one-time exceptional loss of ₹158 crore.

₹79,885 crore: The total value of properties sold by DLF Ltd. this fiscal till December 2025, with ₹55,425 crore yet to be recognised as revenue in its financial accounts.

25%: The proposed tariff rate on South Korean goods announced by Donald Trump, prompting Seoul to seek political support for a key investment bill.

₹5,112 crore: The revenue reported by Tata Consumer Products in the third quarter of this fiscal, up 15.22% year-on-year, driven by strong growth in its India business.

₹180 crore: The net box-office collection of Border 2, a war film starring Sunny Deol, in four days since its release, boosted by the Republic Day holiday.

AROUND THE WORLD

• Risk of a partial government shutdown this weekend is rising. Here’s why.
• Stung by Trump, America’s top trading partners cozy up to China
• US Fed set to pause rate cuts, with no clear path to resuming
• US economy may be experiencing step up in potential growth
• Tariff threats against Canada unlikely to stick, but they could weigh

CHART OF THE DAY

The Centre expects to collect ₹13.6 trillion in income tax in FY26, making individuals and households the single largest contributor to its tax kitty. This accounts for nearly 32% of gross tax revenue.

LOUNGE RECOMMENDS

Pickleball and padel all night is the new cool for youngsters

In a country where cricket is religion, pickleball and padel have picked up mass momentum. But, there’s a twist. Along with late-night partying, Gen Z and millennials are turning to these highly social racquet sports to hang out with friends on weekend nights.

“It’s a great way to catch up without the pressure of eating out or drinking,” says Tanay Bhimrajka, 31, entrepreneur in South Mumbai. “We are a group of friends who play regularly and sometimes welcome newer people whom we connect with via WhatsApp communities,” he says. Read more.

WHAT THE FACT

The brick that built LEGO

On this day in 1958, Godtfred Kirk Christiansen, son of LEGO founder Ole Kirk Christiansen filed a Danish patent for the iconic interlocking toy brick, a design that would go on to captivate children (and adults) around the world.

Edited by Alokesh Bhattacharyya. Produced by Tushar Deep Singh.

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