India and the European Union have reached a free trade agreement that covers up to 2 billion people after nearly two decades of negotiations. The deal represents 25% of global gross domestic product and a third of global trade. The agreement aims to lower tariffs, ease regulatory barriers and expand cooperation across goods and services. India will reduce tariffs on 96.6% of EU exports while the EU will reciprocate for nearly 99% of Indian shipments. The deal was announced Tuesday in New Delhi and it has to be ratified by the European Parliament. It will likely take several months before it takes effect. The deal also includes a framework for deeper defense and security cooperation.