India and the European Union have sealed a historic trade agreement, Prime Minister Narendra Modi announced on Tuesday, as both aim to safeguard their interests amid uncertain relations with the United States.

Following almost 20 years of intermittent talks, the agreement will lead to India opening its large and tightly protected market, the world’s most populous, to free trade with the 27-member EU, its largest trading partner.

“Yesterday, a big agreement was signed between the European Union and India,” Modi said.

“People around the world are calling this the mother of all deals. This agreement will bring major opportunities for the 1.4 billion people of India and the millions of people in Europe,” he added.

Prime Minister Modi and European Commission President Ursula von der Leyen are set to jointly unveil the agreement and its specifics at an India–EU summit in New Delhi later on Tuesday.

Trade between India and the EU reached $136.5 billion in the fiscal year ending March 2025.

The deal follows closely on the heels of the EU’s landmark agreement with the South American bloc Mercosur, as well as accords reached last year with Indonesia, Mexico, and Switzerland, Reuters news agency reports.

Over the same timeframe, India concluded trade agreements with Britain, New Zealand, and Oman.

The wave of agreements highlights countries’ attempts to insulate themselves from the United States, as President Donald Trump’s push to acquire Greenland and threats of tariffs on European countries strain long-standing Western alliances.

Trump has slapped a 50% tariff on Indian goods, and talks on an India–US trade deal fell apart last year after communications between the two sides broke down.

The India-EU agreement will be formally signed after a legal review process expected to take five to six months, according to an Indian government official familiar with the matter.

“We expect the deal to be implemented within a year,” the official added.