India-EU FTA: Has 'Mother Of All Deals' By India, Europe Started End Of US Global Dominance?

London: A trade deal between India and the European Union was signed this week, 20 years after negotiations began in 2007. European Commission President Ursula von der Leyen, European Council President Antonio Costa, and Prime Minister Narendra Modi announced the agreement on Tuesday. Due to its scale, it is being called the "mother of all deals." The impact of this deal will extend beyond India and Europe. It is being seen, in particular, as a sign of weakening American influence.

Ravinder Kaur, Professor of Asian Studies at the University of Copenhagen, wrote in an article for The Guardian that the EU-India Free Trade Agreement reflects the emerging picture of a post-American world order amidst threats to regional sovereignty, Trump's punitive tariffs, and the weakening of multilateral institutions.

THE BODY LANGUAGE😍

Ursula extending hand to PM .@narendramodi Ji & the Firm Grip of Bharat & EU leaders. Speaks Volumes.

Hello .@realDonaldTrump, Thank you for your attention. 😂😂😂#IndiaEUFTApic.twitter.com/6d1ekGZUrR

— BhikuMhatre (@MumbaichaDon) January 27, 2026

Is Donald Trump the latest catalyst?

Kaur states that India and the EU had abandoned negotiations on this deal in 2013.  It was revived in 2022 after the pandemic, when the world sought to de-risk and diversify supply chains away from China. However, it was not China, but rather Donald Trump's escalation of tensions with both India and Europe, that ultimately brought this deal to fruition.

The broad scope of the India-EU partnership points to greater alignment in multilateral institutions, including increased engagement in the Indo-Pacific region. As the US gradually retreats from the Western Hemisphere, the Indo-Pacific region, which has been central to US engagement in Asia, has become more open to cooperation with the EU.

"This is not just a trade agreement, but a new blueprint for shared prosperity."

- PM Modi on India-EU FTA#IndiaEUFTA #IndiaEUTradeDeal pic.twitter.com/bnQhXX0DdC

— BJP (@BJP4India) January 27, 2026

What are the implications of the India-EU FTA?

This trade deal is the largest of its kind but is also part of a growing trend as many countries seek to forge new alliances. Brussels recently finalized a trade deal with the South American Mercosur trade bloc, and several more deals are in the pipeline. India has also signed agreements with the UK and New Zealand in recent months.

These deals in recent months signal a shift that cannot be ignored. Many countries outside the West have long advocated for multipolarity, strategic autonomy, and de-dollarization. That world appears to be rapidly taking shape. The EU-India cooperation, in particular, demonstrates that "America First" is increasingly becoming "America Alone."