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India, EU sign ‘mother of all deals’, says Modi
India and the European Union have signed a major free trade agreement. Prime Minister Narendra Modi called it the "mother of all deals." This pact represents a significant portion of global GDP and trade. It is expected to create many opportunities for businesses and consumers in both India and the EU. Key Indian sectors like textiles and jewellery will benefit.
Prime Minister Narendra Modi said on Tuesday that the free trade agreement signed between India and the European Union a day earlier would deliver sweeping economic gains, calling it the “mother of all deals” and a landmark partnership between two of the world's largest economies.
Speaking in New Delhi ahead of meetings with European Union leaders, Modi said the pact — which represents around 25% of global GDP and nearly one-third of global trade — would create significant opportunities for businesses and consumers across both regions. He said the agreement would boost key Indian sectors such as textiles, gems and jewellery, and leather goods, while deepening investment and trade ties with Europe.
Also Read: All roads lead to a deal as India and EU gear up for FTA finale
"This deal will bring many opportunities for India's 1.4 billion and many millions of people of the EU," he said.
Negotiations on the India-EU free trade agreement resumed in 2022 after a long hiatus and have gained momentum as both sides seek to reduce dependence on China and strengthen supply-chain resilience. The talks cover not just trade in goods and services, but also investment protection, sustainability standards, digital trade and regulatory cooperation — areas that have proved contentious in earlier rounds.
The move comes days after the European bloc signed a key pact with the South American bloc Mercosur, following deals last year with Indonesia, Mexico and Switzerland.
Negotiations on the India-EU free trade agreement resumed in 2022 after a long hiatus and have gained momentum as both sides seek to reduce dependence on China and strengthen supply-chain resilience. The talks cover not just trade in goods and services, but also investment protection, sustainability standards, digital trade and regulatory cooperation — areas that have proved contentious in earlier rounds.
Also Read: India-EU FTA likely to expand trade rather than threaten domestic industry: GTRI
Modi said the India-EU pact would complement India's recently concluded trade agreement with the UK and help accelerate domestic manufacturing, aligning with New Delhi's push to position India as a global production hub. This is a perfect example of a partnership between two major economies of the world," the Prime Minister said.
Emphasising the broader global impact, PM Modi said the FTA would boost global confidence in India. "This Free Trade Agreement will further strengthen global confidence in India for businesses and investors across the world," he said, adding that India is actively working on global partnerships across all sectors.
Focusing on the energy sector, the Prime Minister pointed to significant investment opportunities across the energy value chain. "If I talk about the energy sector alone, there are immense investment opportunities across different segments linked to the energy value chain," he said.
Addressing the fourth edition of India Energy Week 2026, which he inaugurated virtually, Modi linked the broader trade and investment push to India's energy ambitions. He said India is targeting $100 billion in investment in the oil and gas sector by the end of the decade, as rising energy demand accompanies rapid economic growth. India is already among the world's top five exporters of petroleum products, he noted, and demand for energy products is expected to continue climbing.
The India-EU free trade agreement would also complement India's recently concluded trade deals with the United Kingdom and the European Free Trade Association (EFTA), Modi said, arguing that the growing network of trade pacts would strengthen India's manufacturing base and expand export opportunities.
India has stepped up trade negotiations over the past few years, signing a free trade agreement with the UK and a separate pact with the four-nation EFTA bloc which includes Switzerland, Norway, Iceland and Liechtenstein, to secure greater market access, investment commitments and regulatory cooperation.
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Source: EconomicTimes
Related Posts: India EU free trade agreement,Narendra Modi EU deal,economic gains India EU,trade pact India Europe,investment opportunities India EU,landmark trade agreement,India,European Union
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