India, Feb. 6 -- India has a rich trading relationship with Europe that dates back to 250 BC, even predating the Silk Road. For most of the 2,000 years since, Indian muslins, cotton, handicrafts, spices, emeralds, and gems were the most coveted merchandise in international trade, a bulk of which made their way to Europe. In return, gold and silver poured into India to pay for these. The Indo-Europe trade achieved great scale and proportions in its halcyon days. The efforts to cement this relationship through a comprehensive free trade agreement (FTA) with the European Union started in 2007. The negotiations had to be abandoned in 2013 due to serious differences in positions on multiple issues. The negotiations started afresh in 2022, and despite the enormity and complexity of the challenges, could be completed only due to the strong commitment and visionary leadership of the two parties. Importantly, the FTA that both sides have negotiated is a reaffirmation of the rules-based trading relationship in an increasingly fragile global economic order. The agreement is historic not merely because of the breadth and depth of the topics and disciplines, but also because both sides reached common ground on many difficult issues. The India-EU FTA is perhaps the most consequential trade deal concluded in recent times. It could create one of the largest free trade areas in the world, comprising almost 2 billion people and 28 countries that represent 25% of the global GDP. In addition, the agreement is modern and novel in its treatment of issues and concerns. The agreement has up-to-date and substantive disciplines as well as procedural provisions for deepening the trade relationship. The agreement establishes a new template for addressing market access and regulatory barriers both on goods and services, which reinforces traditional disciplines with innovative elements. For example, the rules of origin chapter ensures that only products with substantial processing or production in the partner countries are granted country of origin status; this is achieved through detailed and intricate product-specific rules that seek to align with existing and newer supply chains. In addition, the agreement replicates intellectual property protections with an added focus on promoting the transfer of technology and information flows. The critical focus of the agreement is the two parties opening up their vast and expansive markets to each other. The agreement offers market access for more than 99% of India's export trade by value, of which at least 90% will receive immediate duty elimination once the agreement comes into force. Notably, the labour-intensive items such as textiles and clothing, leather, gems and jewellery, wood and wooden crafts, and marine products will receive early gains. It will also enable industries such as chemicals, electronics, agri-processing, and minerals to diversify their exports in the vibrant EU common market. While India has allowed market access for the EU's automobiles, this has been done in a phased and calibrated manner, through tariff quotas. Likewise, India's concessions on the EU's wine seek to protect the interests of the domestic industry, while encouraging competition in the higher price segments. Services trade offers significant potential in the India-EU trade relationship. India has received commitments from the EU for 144 services sectors under the agreement, which is unprecedented. In addition, the chapter on mobility ensures that the temporary entry and stay of professionals and contractual service suppliers will be smoother and more assured, implying that India's talented service professionals can establish their presence in the EU market. The annex on financial services provides for greater engagement between India and the EU on electronic payment systems, including leveraging India's technological expertise in digital payment systems such as the UPI. The agreement also provides the possibility for the practitioners of AYUSH and traditional medicine to provide their services in the EU with greater certainty. The FTA seeks to nurture a freer, fairer, and mutually beneficial relationship between the two large markets. The chapter on trade and sustainable development sets a new model of cooperation in relation to sustainability concerns. The chapter holistically integrates the objective of sustainable development into the trade relationship, without seeking to harmonise labour or environment standards of the parties. The thrust of the engagement is on policy dialogue, technical assistance, and mobilisation of financial tools and resources. Both sides have also negotiated mechanisms such as the rapid reaction mechanism, non-violation complaints, and standalone annexes that could address specific concerns with respect to certain policy measures or product-specific measures. The key challenge in negotiating the FTA was realising heightened ambitions on opening up markets without compromising the concerns and sensitivities of significant stakeholders - for example, the dairy and agricultural sector. The income and livelihood concerns of small and marginal farmers and certain industry segments were uppermost in the negotiators' minds. To be fair, the EU also demonstrated much-needed flexibility in this regard. In an era of supply chain disruptions, the India-EU free trade agreement will complement the gains from the India-UK FTA, EFTA, and other comprehensive trade agreements. Since 2021, India has concluded nine comprehensive trade agreements and is currently in negotiations for several others. The conclusion of the India-EU trade agreement will serve as a catalyst for hastening more economic and trade engagements. The India-EU FTA is a major step in achieving expanded market access, closer economic integration, and deepening strategic autonomy and resilience, especially in an uncertain and volatile global economy. As economic historians note, economic prosperity can be best achieved when nations trade with each other based on fair, rules-based, and predictable legal frameworks and institutions. The India-EU FTA seeks to uphold this time-tested principle....