Landmark deal

Negotiations have been concluded and the India-EU trade deal finalised after almost 20 years of talks. Leaders from both sides hailed it as a major breakthrough in economic cooperation.

Tariffs will be cut for over 90 per cent of goods traded by value. European exporters stand to save roughly €4 billion a year, and Indian goods get significantly better access to EU markets. EU automakers will rejoice over the huge tariff cuts.

The will now go through legal vetting and approvals both from the European and Indian parliaments. The signing and enforcement are expected later in 2026 or by early 2027.

In a strategic context this “mother of all deals” is a shining example of pragmatism amid global trade tensions and diversifying supply chains while positioning India and the EU as stable partners.

R Narayanan

Navi Mumbai

Good investment awaited

This refers to ‘More funds for farm R&D’ (January 27). India’s poor outlay on R&D is a part of a gloomy picture of its overall R&D expenditure — its gross expenditure on R&D remains stuck at 0.64 per cent of GDP.

However, though agricultural economy contributes less than 20 per cent of GDP, nearly half of total labour is engaged here, marked by low incomes and fragmenting land holdings.

Therefore, raising their productivity, reducing crop losses due to natural forces, and improving their quality of life through higher investment in agro R&D will enhance their share in GDP growth.

YG Chouksey

Pune

Power reforms

Apropos the Editorial ‘Switching on reforms’ (January 27).

The fallout options from the Bill, to be introduced in the upcoming Budget session of Parliament could be significant.

Large industrial consumers may directly contract renewable energy producers, accelerating India’s clean energy transition.

Competition among multiple discoms could drive the adoption of digital billing systems and smart grids, improving transparency and efficiency.

Shifting electricity subsidies to State budgets strengthens discoms’ financial position, enhancing their creditworthiness and enabling access to bank loans for expansion and modernization.

The presence of multiple suppliers in a single area can empower consumers with greater choice, including green power options.

Overall, these reforms could modernise India’s power sector by fostering competition, transparency, and sustainability.

O Prasada Rao

Hyderabad

Published on January 27, 2026