India just rewrote a big chunk of the global trade map — and the move has implications for everything from textiles to cross-border payment rails and crypto markets. Two landmark deals, two weeks apart - Jan. 27, 2026: After nearly 20 years of negotiation, India and the EU finalized a comprehensive free trade agreement. The pact cuts tariffs on more than 96.6% of EU goods entering India, extends to services and investment across all 27 EU member states, and is expected to save exporters on both sides up to €4 billion a year in duties. Key Indian export sectors such as gems, jewellery and textiles — which have been squeezed by earlier US tariffs — stand to gain materially. - Feb. 3, 2026: India and the United States announced a bilateral trade deal. According to an announcement by former President Trump on Truth Social following a call with Prime Minister Modi, the US will charge a reduced “reciprocal tariff,” lowering it to 18% (Trump wrote it was cut “from 25% to 18%”; some reports had earlier cited other figures). The deal was declared effective immediately. Where this leaves India in trade and geopolitics - A turning point: Together the two pacts deepen India’s global trade ties and mark a major push for diversification that Prime Minister Narendra Modi has pursued since at least 2022. India has now signed its ninth and tenth free trade agreements since 2014, joining previous deals with the UK, Oman and New Zealand. - Broad benefits but sharp domestic debate: Modi framed the EU pact as an opening for farmers and small business: “This historic agreement will make it easier for our farmers and small businesses to reach the European markets. It represents 25% of the global GDP and one-third of global trade.” European Commission President Ursula von der Leyen called it “the mother of all deals,” creating “a free trade zone of two billion people.” - Critics point to asymmetry: Detractors argue the US deal heavily favors American exporters. Reports say India agreed to reduce its tariffs and non-tariff barriers to US imports to zero and to purchase more than $500 billion of US energy, technology and agricultural products — a clause that has provoked domestic concern over market access for large American agribusinesses. The BRICS balancing act - India’s new deals complicate its BRICS role. Intra-BRICS merchandise exports surged from $84.2 billion in 2003 to $1.17 trillion in 2024 — growing at an annual average of 13.3%, more than double the 5.7% global trade growth over the same period. Still, the bloc accounts for about 5% of world trade and lacks a comprehensive multi-country trade agreement. - As India takes the BRICS presidency in 2026, New Delhi must juggle practical cooperation among BRICS members while expanding ties with Western partners. The EU and US pacts make that balancing act both harder and more consequential. Why crypto and payments-watchers should pay attention - Cross-border trade expansion increases demand for faster, cheaper settlement rails. The India–EU and India–US pacts will drive more trade volume and FX flows, raising the commercial case for tokenized trade finance, stablecoins, and blockchain-based settlement systems that cut costs and speed up reconciliation. - Competing payment systems and de-dollarization pressures remain relevant. BRICS members have been exploring alternatives to dollar-centric clearing and have launched regional payment initiatives; as India deepens ties with the West while leading BRICS, the market for interoperable, multi-rail payment solutions — both fiat-based and crypto-linked — could grow. - Policy spotlight: India’s regulatory stance on crypto has been cautious and evolving. Bigger trade flows and geopolitical realignments may accelerate policymaking around cross-border crypto use, stablecoins, and tokenized assets for trade purposes. Bottom line The EU and US trade deals mark a watershed for India’s economic diplomacy — opening markets, sparking domestic debate over asymmetry and market access, and reshaping New Delhi’s role inside BRICS. For crypto and payments markets, the knock-on effects are clear: increased trade volume and geopolitical shifts will raise demand for modern, efficient cross-border settlement solutions, putting blockchain-based tools and alternative payment rails squarely in the spotlight. Read more AI-generated news on: undefined/news