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India-EU FTA concludes, to be balanced, forward-looking: Ministry
India-EU Free Trade Agreement concludes, to be balanced, forward-looking: Ministry
Prime Minister Narendra Modi hailed the India-EU Free Trade Agreement as the “mother of all deals”, saying it will boost trade, manufacturing, services, and investment while strengthening strategic ties. The historic pact opens markets for nearly two billion people and includes provisions for defence, technology, and labour mobility.
The newly concluded trade agreement between India and the European Union is being hailed as the “mother of all deals”, drawing global attention for its scale and ambition. The pact is expected to create a market of nearly two billion people and account for close to a quarter of global gross domestic product.
Commerce Secretary Rajesh Agrawal confirmed on Monday that negotiators from India and the EU have successfully wrapped up talks on what he described as an “ambitious, balanced, forward-looking and mutually beneficial” free trade agreement.
"India-EU FTA negotiations concluded, to be announced tomorrow. Formal deal signing to be done after legal scrubbing. The deal will be balanced, forward-looking and help with better economic integration with the EU. The deal will propel trade and investment between both sides. The deal will enter into force sometime next year. Legal scrubbing of text to take 5-6 months, formal signing to be done post that," said Rajesh Agrawal.
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Prime Minister Narendra Modi formally confirmed the signing of the India-EU trade deal on Tuesday. The announcement appeared to unsettle the United States, with Treasury Secretary Scott Bessent reiterating allegations that India's oil trade with Russia is financing the war in Ukraine, which is backed by the European Union.
Prime Minister Narendra Modi described the India-European Union Free Trade Agreement (FTA) as the “mother of all deals”, emphasising that it would unlock vast opportunities for businesses and citizens on both sides while strengthening ties between two of the world's largest economies.
“Yesterday, a big agreement was signed between the European Union and India. People are calling this the mother of all deals. This agreement will bring major opportunities for the public in India and Europe. This is a perfect example of a partnership between two major economies of the world,” Modi said.
#WATCH | Prime Minister Narendra Modi says, "Yesterday a big agreement was signed between the European Union and India. People are calling this the mother of all deals. This agreement will bring major opportunities for the public in India and Europe. This is a perfect example of… pic.twitter.com/Tgyzmliyok — ANI (@ANI) January 27, 2026
The Prime Minister noted that the pact represents 25 per cent of global GDP and nearly one-third of world trade. He added, “This agreement empowers our shared commitment towards democracy and the rule of law. This Free Trade Agreement with the European Union will also complement Britain and EFTA's agreements. I congratulate the people of the nation for this.”
Modi further highlighted the economic benefits, saying, “Manufacturing will get a huge boost from this trade deal with the EU, and the services sector will also expand. The Free Trade Agreement will boost the confidence of every investor and businessman to invest in India.”
The FTA comes amid heightened geopolitical tensions and US tariff measures on multiple nations. Reacting to the deal, US Treasury Secretary Scott Bessent criticised the European Union for signing the pact, stating, “We have put 25% tariffs on India for buying Russian oil. Guess what happened last week? The Europeans signed a trade deal with India. Europeans are financing the war against themselves.”
The announcement coincides with the 16th India-EU Summit in Delhi, where Modi is scheduled to meet European Commission President Ursula von der Leyen and European Council President Antonio Costa. The summit is expected to mark the formal conclusion of long-pending FTA negotiations, with officials describing it as a “historic” milestone.
Commerce Secretary Rajesh Agrawal confirmed on Monday that India and the EU have successfully finalised talks. He said the agreement would come into force next year after legal scrubbing, followed by formal signing and ratification.
The FTA is expected to transform bilateral trade and investment, covering sectors including manufacturing, services, clean energy, digital technology, and people-to-people mobility. It will also provide a framework for the movement of Indian workers to Europe, complementing existing migration partnerships with France, Germany, and Italy.
Defence and security cooperation will also be strengthened under a proposed Security and Defence Partnership (SDP). Officials said this initiative would enhance interoperability, facilitate Indian participation in the EU's €150 billion SAFE (Security Action for Europe) programme, and bolster strategic collaboration.
India and the EU first began FTA negotiations in 2007, but talks stalled in 2013 due to differences in ambition. Negotiations resumed in June 2022, culminating in the historic agreement expected to open up a combined market of nearly two billion people.
Trade data underscore the significance of the pact: bilateral goods trade reached $136 billion in 2024-25, with India exporting $76 billion and importing $60 billion. The EU is India's largest trading partner, accounting for around 17 per cent of Indian exports and nearly 9 per cent of EU exports to the rest of the world.
One of the most notable provisions of the FTA is the opening of India's automobile sector to European car manufacturers. Import duties on European vehicles are set to fall from 110 per cent to approximately 40 per cent, making brands such as Volkswagen, Mercedes-Benz, and BMW more affordable in India.
With the FTA, India is set to deepen economic integration with Europe, offsetting the impact of US tariffs, expanding its global trade footprint, and reinforcing strategic ties in trade, defence, and technology.
(With agencies' inputs)
Source: ZeeNews
Related Posts: India EU FTA, Narendra Modi, India EU Free Trade Agreement, Europe India trade deal, mother of all deals, EU-India strategic partnership,India EU FTA, Narendra Modi
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