EU–India Trade Pact Signals a Pragmatic Turn in Globalisation

Agreed in January 2026 and analysed by Allianz Global Investors, the EU–India free trade agreement highlights how major economies are recalibrating trade strategy amid geopolitical fragmentation.

• The deal removes or reduces tariffs on over 90% of EU goods exports, with estimated annual savings of €4bn, but economic gains are likely to materialise gradually rather than immediately.

• It reflects the EU’s shift toward bilateral “Realpolitik” as multilateral trade frameworks weaken, mirroring recent agreements with Mercosur and others.

• India emerges as a strategically neutral hub, benefiting from diversified trade links and increasing appeal to global investors seeking reduced concentration risk.

How durable is this re-wiring of global trade—and which assets stand to gain over time? The full report explores the structural and portfolio implications in depth.