A HISTORIC DEAL IS DONE; TRUMP OR NO TRUMP, MODI HAI TO MUMKIN HAI: DR CHANDRA

In the recent offering of The JC Show, Dr Jagdeesh Chandra delves into the historic diplomatic and economic achievement stating that Narendra Modi finalised the long-stalled trade agreement with the European Union, hailed as the “Mother of All Deals.” Dr Chandra underscores Modi’s decisive and action-oriented leadership, which transformed 18 years of stalled negotiations into tangible outcomes benefiting ordinary Indians. The deal promises duty-free trade, cheaper luxury goods, and expanded mobility for students and professionals, while reinforcing India’s global strategic standing. Beyond economics, Modi’s measured diplomacy sends a strong signal of strategic autonomy, showing the world that India acts through concrete decisions, not rhetoric. The agreements also bolster Make in India and long-term bilateral cooperation. Excerpts:

• Today’s headline of The JC Show is “We Did It… Modi’s Republic Day Gift.” What does this headline signify?
  Dr Jagdeesh Chandra: It signifies that the deal is complete, regardless of Trump’s presence or absence. The meaning is simple: if Modi is there, it is possible. The outcome of this deal is that two of the world’s largest economies have come together and begun writing a new chapter. India has opened its doors to 27 countries. In an environment marked by Trump’s tariff threats, this deal comes as a breath of fresh air. There is visible enthusiasm between Europe and India, meaning between EU nations and India. The image saying “We Did It,” showing Narendra Modi with two European leaders, reflects how significant this achievement is. It underlines global appreciation for the fact that such a large deal has been concluded through Modi’s active participation, with long-term consequences. As for the Republic Day gift, it is natural that there is a celebratory atmosphere across the country. With products becoming cheaper—cars in particular—and many other goods seeing price reductions, there is a festive mood nationwide. This is the first time that a commercial deal has had such a direct impact on the common citizen, creating widespread enthusiasm.
• A deal that remained stuck in negotiations for 18 years was finalised swiftly under Narendra Modi. How do you view this?
  It is Narendra Modi’s miracle because he is decisive and flexible. Discussions began in 2007 during Manmohan Singh’s tenure. Fifteen rounds of talks took place, but no result emerged. Modi personally took responsibility for finalising the deal, and the outcome is visible. The key troubleshooters in structuring this deal were the external affairs minister, the finance minister, and Piyush Goyal. It is my understanding that they were persuaded to be practical and flexible, with the idea that India must open itself to the world. Opening India’s doors to 27 countries will expand the Indian economy. In fact, both sides are investing in each other’s futures. These arguments were accepted, and the mandate of the prime minister was fulfilled. The question of why this deal was completed during Modi’s tenure has a simple answer: he brings destiny with him. Difficult and seemingly impossible tasks are accomplished under his leadership—be it the Ram temple or Article 370. This deal is another link in that chain and should be acknowledged as such.
• Narendra Modi has described this as the “Mother of All Deals.” What does that mean?
  The meaning is clear: this is being described as the largest trade deal concluded to date in terms of scale and economic reach. It brings together 27 European Union countries on one side and India on the other, representing a combined population base of nearly two billion people, including India’s 1.4 billion population. In economic terms, the agreement is significant as it covers approximately 25 percent of global GDP, giving it substantial weight in the international trading system. At present, bilateral trade between India and the European Union is estimated at around USD 120–130 billion. Under the framework of this agreement, both sides have set a target of expanding this trade volume to USD 200 billion within the next five years. The deal is therefore ambitious in both scope and intent. By opening India’s economy more extensively to 27 countries, the agreement is expected to contribute to economic revival, expansion, and longterm reconstruction across multiple sectors.
• What message does this FTA convey to ordinary people in India?
  The key message is that trade between India and Europe has effectively become tax-free. Ninetynine percent of traded commodities are now exempt from duties. The second major message is that luxury cars have become cheaper, including Mercedes, BMW, and Audi. A car that previously cost INR 4 crore will now cost around INR 3 crore, providing relief ranging from INR 50 lakh to INR 1 crore. There is widespread excitement, especially among the middle class. People who never imagined owning a Mercedes are now considering it. There is a nationwide craze for luxury cars. Wine tariffs have fallen from 150 per cent to 30– 35 per cent, beer prices have dropped by 50 per cent, and chocolates and textiles have also benefited. Textile exports worth USD 263 billion and gems and jewellery worth USD 69 billion will become largely taxfree. Pharmaceuticals and ready-made garments are included as well. Overall, this deal will reduce inflationary pressure and provide major relief. It will boost technology transfer and exports, positioning India as a global export base and injecting new life into the economy.
• What message does this deal send to the rest of the world, especially to Trump?
  The message conveyed to the international community is that unity enhances collective strength, particularly in times of global economic uncertainty and geopolitical pressure. The agreement demonstrates that countries acting together can safeguard their interests more effectively than acting in isolation. In Indian terms, the underlying principle is that division weakens negotiating power, while cohesion strengthens outcomes. In relation to Trump, the message is that India is not influenced by threats, pressure tactics, or confrontational rhetoric. Instead of responding through statements or counterclaims, India has chosen to act through concrete policy decisions. The deal signals confidence in India’s strategic autonomy and its willingness to pursue long-term economic interests without being deterred by external pressure.
• Why does Modi not verbally respond to Trump’s allegations and statements?
  Narendra Modi responds through action, not words. By signing this deal, he has delivered a powerful response. Modi works with restraint, through challenges and difficulties. While it may sometimes appear that Trump is humiliating or ignoring India, this is not the case. Modi is a master diplomat. Ultimately, tariffs will reduce and better deals will emerge. In hindsight, it will be clear that not responding verbally was the right approach.
• What is your assessment of the 13 agreements signed between India and the EU?
  The agreements are described as significant because they are designed to strengthen and reinforce the strategic partnership between India and Europe across multiple critical areas. In addition to the Free Trade Agreement, the understandings extend to defence and security cooperation, maritime security, innovation, space collaboration, and technological exchange, reflecting a broad-based approach to bilateral engagement. Although there were reservations and differing perspectives related to issues such as Ukraine and Gaza, these concerns were addressed and resolved through structured dialogue and consultation. A key feature of these agreements is that they have been concluded with a clear intention of implementation rather than remaining declaratory or symbolic. The overarching message emerging from the set of agreements is one of seriousness, longterm commitment, and a shared willingness to translate decisions into practical outcomes.
• What is the trade balance between India and the EU?
  The trade balance remains clearly positive in India’s favour. Current figures indicate that India’s exports are valued at approximately USD 75.8 billion, while imports stand at around USD 60.07 billion, resulting in a trade surplus of roughly USD 15 billion. This surplus suggests that the existing trade framework is advantageous for India. Looking ahead, bilateral trade is projected to expand significantly, with both sides targeting a total trade volume of USD 200 billion within the next five years. In this context of overall expansion, the present trade surplus is not viewed as a matter of concern, as growth is expected to be broad-based and mutually beneficial.
• What are the benefits of the mobility pact signed between India and the EU?
  The agreement is expected to create significant opportunities for both professionals and students. It provides for unrestricted movement of students, removing visa-related obstacles that often delay or limit educational access. Graduates will also be able to seek employment for a period of up to two years, allowing them to gain international work experience. At a time when there is growing frustration over the complexity and uncertainty of the United States visa system, this arrangement offers a practical and reliable alternative. The pact is therefore seen as opening new pathways for education, employment, and broader global mobility
• Will cheaper European cars harm Indian car manufacturers? What if China, the US, or Japan flood the Indian market with cars?
  Competition is essential for survival. Only native European carmakers will receive this relief; nonEuropean manufacturers will not. Safeguards ensure only EU-native manufacturers benefit. India is also emerging as a manufacturing hub, capable of competing with China. Larger markets attract more consumers, benefiting all participants.
• What challenges does this historic deal face?
  The key challenges ahead relate primarily to procedural and regulatory requirements. These include the completion of legal formalities, approval by the European Council, and ratification by the national parliaments of all 27 European Union member states. Each stage involves its own review processes and timelines, which could affect the overall pace of implementation. In addition, concerns related to carbon taxation and environmental pollution remain unresolved and will require further discussion. Despite these hurdles, India has indicated its intention to move forward expeditiously. The stated objective is to complete the necessary steps and bring the agreement into effect within a year, with implementation potentially targeted by 2027.
• How will the removal of tax concessions on 87 percent of Indian exports affect exporters?
  The issue is viewed as a matter of concern. The suspension of the PSP plan has resulted in the imposition of higher tariffs, leading to increased costs for trade and businesses. These additional financial burdens affect competitiveness and create uncertainty for exporters and importers alike. At the same time, carbon-related regulations and environmental compliance requirements are adding further pressure, particularly in sectors sensitive to sustainability standards. Together, these factors complicate the current trade environment. However, early execution of the proposed agreement is expected to address these challenges. By providing a clearer regulatory framework and easing tariff-related constraints, timely implementation is seen as a means to reduce costs, manage carbonrelated concerns, and stabilise trade relations.
• What did the prime minister say about this deal? What did other leaders say about the deal? Also, what was Piyush Goyal’s role in this process?
  Prime Minister Narendra Modi described the agreement as a global game-changer, stating that it would accelerate innovation, promote shared prosperity, and drive technological advancement. Amit Shah characterised the development as a defining moment for India’s trade trajectory. Finance Minister Nirmala Sitharaman termed the agreement historic and commended the role played by Piyush Goyal in its conclusion. Uttar Pradesh Chief Minister Adityanath Yogi highlighted the expected benefits of approximately INR 4.6 lakh crore for the state’s labour-intensive industries. Overall, political and administrative response to the deal has been positive. Piyush Goyal emerged as a key figure, operating largely away from public attention. Tasked by the prime minister for six months, he has concluded eight free trade agreements during his tenure, more than any predecessor, and played a central role in shaping the deal’s financial framework.
• How do you view Modi’s diplomatic engagement with EU leaders?
  Prime Minister Narendra Modi was seen as demonstrating strong diplomatic and public relations skills during the engagement with European Union leaders. Their invitation as chief guests for the Republic Day celebrations was viewed as a carefully calibrated diplomatic gesture. The visit left EU leaders highly impressed, reinforcing the perception of India as a confident and influential global partner. The occasion marked a notable moment in bilateral relations, symbolising the elevation of ties beyond routine diplomacy. It also underscored the growing economic and strategic partnership between India and the European Union. The event was widely regarded as historic, reflecting mutual respect and a shared commitment to deepening cooperation across multiple sectors.
• Will this deal strengthen the Make in India initiative?
  Yes. India is positioned to emerge as a major global manufacturing hub under the agreement. Duty-free access for 99 per cent of products significantly enhances the competitiveness of Indian goods in international markets. This expanded market access is expected to encourage manufacturing activity, attract investment, and strengthen India’s role in global supply chains across multiple sectors.

During the show #JConModiRepublicDayGift trended top All-India on X