India and the European Union have reached a long-awaited free trade agreement, ending nearly 20 years of negotiations and significantly deepening economic and strategic ties.

The deal, described by EU leaders as the “mother of all deals,” could impact up to 2 billion people and will take several months to come into force.

It aims to eliminate tariffs on most goods, from textiles and medicines to European wine and cars, at a time when both sides face trade pressure from U.S. tariffs.

Prime Minister Narendra Modi said the partnership represents 25% of global GDP and one-third of world trade, the AP has reported.

Beyond commerce, the agreement also includes plans for closer defense cooperation and easier mobility for skilled workers and students.