New Delhi / Brussels — As political fissures continued to widen in Washington, U.S. Senator Ted Cruz publicly blamed former President Donald Trump and senior White House aides for delays in key trade talks, India and the European Union finalized a landmark agreement that is being hailed as historic by leaders on both sides.
In leaked audio shared with donors, Cruz accused Trump, Vice President JD Vance and other advisers of blocking progress on a potential India-U.S. trade deal, suggesting internal resistance in the U.S. administration was hindering negotiations. 
Despite political turbulence in the United States, leaders in New Delhi and Brussels took an entirely different direction on global economic cooperation.
On January 27, 2026, India and the European Union concluded a long-pending comprehensive Free Trade Agreement (FTA) after nearly two decades of discussion. The deal — described by officials as transformative — covers trade between India and the 27 EU member states, representing roughly 25 % of global GDP and one-third of global trade. 
Prime Minister Narendra Modi called the agreement the “mother of all deals”, underscoring its potential to deepen economic integration between two of the world’s largest democratic economies. 
The pact was finalized during the 16th India-EU Summit, attended by European Commission President Ursula von der Leyen and European Council President Antonio Costa, who were chief guests at India’s Republic Day celebrations. 
Officials said the FTA is expected to significantly expand market access, reduce tariffs, and strengthen cooperation in areas such as industrial goods, services, and investment — heralding a new era in economic ties after years of stalled negotiations. 
Analysts noted the contrast between internal U.S. political debates over trade policy and the forward momentum displayed by India and the EU. In doing so, they argue, the new pact could reshape global trade alignments even as longstanding talks with the United States remain unsettled.
For New Delhi and Brussels, the agreement not only boosts economic cooperation but also signals a shared strategic vision at a time when global trade and supply chains are being reconfigured.
