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benefit from so-called “first mover advantage”.

Europe’s key agricultural, automotive and service sectors stand to gain. But sensitive agricultural sectors, such as beef, rice and sugar whose inclusion in an earlier deal struck with South American bloc Mercosur sparked farmers’ anger in Europe, were left out of the agreement.

New Delhi sees the European bloc as an important source of much-needed technology and investment to rapidly upscale its infrastructure and create millions of new jobs.

It also includes a security partnership, providing “new opportunities” for defence companies, Modi said.

“We are not only making our economies stronger -- we are also delivering security for our people in an increasingly insecure world,” von der Leyen said, speaking alongside Modi after exchanging agreements.

“By combining these strengths, we reduce strategic dependencies, at a time when trade is increasingly weaponised,” she added.

Bilateral trade in goods reached 120 billion euros ($139 billion) in 2024, an increase of nearly 90 percent over the past decade, according to EU figures, with a further 60 billion euros ($69 billion) in trade in services.

Under the agreement, India is expected to ease market access, and European firms will get privileged access to the Indian financial services and maritime transport market, the bloc said.

Tariffs on cars will be gradually lowered from a top rate of 110 percent to as low as 10 percent -- with a quota of 250,000 vehicles -- while duties on wines progressively go down from 150 percent to as low as 20 percent.

Currently at 50 percent, tariffs on processed foods -- including pasta and chocolate -- will be eliminated, according to the EU.

Von der Leyen said she expected exports to India to double, and that the EU would “gain the highest level of access ever granted to a trade partner in the traditionally protected Indian market”.