Twin Trade Triumphs: How India’s ‘Mother’ and ‘Father’ Deals Are Redefining Its Global Economic Power
Throughout January 2026, India established new trade agreements that reshaped international trade patterns through a bold and transparent approach. Through two major agreements, now referred to by New Delhi as the “Mother of all deals” and the “Father of all deals”, the Indian government asserted its role as a global trade shaper rather than a follower of international trade trends.
The India–EU Free Trade Agreement, popularly called the Mother of all deals, marked a historic breakthrough after nearly two decades of negotiations. India gained access to a market of nearly two billion consumers, accounting for 25 percent of global GDP. For Indian exporters, this is a landmark achievement. The European market now offers duty-free access to over 99 percent of Indian exports, creating a reliable and profitable pathway for textiles, leather, gems, and jewellery into one of the world’s most premium markets.
The India–US trade agreement, which followed soon after, established itself as the Father of all deals. Finalised after talks between Prime Minister Narendra Modi and US President Donald Trump, the agreement reduced tariffs on Indian goods to 18 percent and expanded cooperation in energy, technology, and agriculture. Beyond numbers, the strategy balances global market access with safeguards for national interests.
Together, these twin victories strengthen India’s economic defences, reduce global vulnerabilities, and position the country as a confident, competitive force on the world stage, backed by a government focused on ease of trade and global trust.
What Makes The India–EU FTA The ‘Mother Of All Deals’?
January 27, 2026, stands as the moment when India and the European Union ended years of talks and began a historic partnership. After two decades of negotiations, the two sides reached an agreement now widely referred to as the “Mother of All Deals,” creating one of the world’s largest free trade areas. By any measure, this is big business: the pact spans nearly two billion people, represents 25% of global economic output, and accounts for one-third of international trade. The scale is nothing short of extraordinary.
For Indian exporters, this marks a moment of celebration. More than 99% of Indian products, including textiles, leather, gems, jewellery, and other goods- can now enter European markets duty-free. This opens doors to lower costs, smoother access, and higher returns. Europe, too, is deeply invested in the partnership. India rolled out a welcome mat by cutting import duties on luxury European cars from 110% to 10%, while also reducing tariffs on wine and industrial products.
How does the government describe this landmark treaty?
With warmth. Commerce Minister Piyush Goyal called it a “compassionate and loving” deal, likening the EU’s 27 nations to “28 children.” At its core, the agreement blends scale with strategy- designed to deliver shared gains for all involved.
What Makes The India–USA FTA The ‘Father Of All Deals’?
The India–US trade agreement signed on February 2, 2026, functions as a major international pact rather than a simple administrative document. The deal took shape through a direct phone conversation between Prime Minister Narendra Modi and US President Donald Trump, resetting trade relations between the two countries.
The United States reduced import duties on Indian goods from 25 percent to 18 percent, opening fresh opportunities for Indian exporters. In return, India agreed to address tariff and non-tariff barriers, allowing select American products to enter the Indian market with reduced or zero duties.
The real significance of the agreement goes beyond the numbers. A $500 billion “Buy American” commitment spanning energy, technology, and agriculture brings substantial economic weight, while the reported Russian oil–linked clause adds a clear geopolitical dimension. Coined the “Father of all deals” by industrialist Harsh Goenka and Commerce Minister Piyush Goyal, the pact positions India as a formidable global negotiator, capable of closing complex agreements while thinking strategically on the world stage.
Mother Of All Deals VS Father Of All Deals
| Deal | Date & Context | Key Features | Benefits for India | Benefits for Partner | Other Notes |
|---|---|---|---|---|---|
| Mother of All Deals: India–EU FTA | Signed on Jan 27, 2026, after nearly 20 years of negotiations, creating one of the world’s largest free trade zones | Covers nearly 2 billion people, 25% of global GDP, one-third of global trade | Over 99% of Indian exports (textiles, leather, gems) get duty-free access to EU markets | EU benefits from lower tariffs: luxury cars (110% → 10%), reduced tariffs on wine & industrial goods | Commerce Minister Piyush Goyal called it a “compassionate and loving” deal; EU’s 27 nations referred to as “28 children” |
| Father of All Deals: India–US Trade Agreement | Announced Feb 2, 2026, after a phone call between PM Modi and US President Donald Trump, marking a bilateral trade reset | US cut reciprocal tariffs on Indian goods from 25% → 18%; India agreed to reduce/remove several tariff & non-tariff barriers | Greater market access for Indian goods; opportunity for exporters | US gains: increased “Buy American” purchases ($500B in energy, tech, agriculture) | Strategic condition: India halts Russian oil purchases; termed “Father of all deals” by Harsh Goenka & Piyush Goyal |
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