India-EU announce mega FTA; Modi calls it New Delhi's biggest trade deal ever

28/01/2026

NEW DELHI, Jan 27: India and Europe on Tuesday announced sealing of an ambitious free trade agreement -- billed as "mother of all deals" -- that came against the backdrop of a fractious global environment and trade disruptions largely caused by Washington's policy on tariff.
Today, India has concluded the biggest free trade agreement (FTA) in its history with the European Union, Prime Minister Narendra Modi said after holding summit talks with the 27-nation bloc's top leaders Ursula von der Leyen and Antonio Costa.
"This is not just a trade agreement. This is a new blueprint for shared prosperity," Modi said in his media statement.
The two sides also inked a strategic defence partnership pact and a mobility agreement.
The prime minister said India-EU partnership will help the world.
European Council President Costa said India and the EU began a "new chapter" in their relations in sectors such trade, security, and on people-to-people ties.
"Trade agreements reinforce a rules-based economic order and promote shared prosperity. That's why today's free trade agreement is of historic importance. It is one of the most ambitious agreements ever concluded," he said.
"We delivered the mother of all deals," Von der Leyen said.
The long-awaited FTA is set to significantly expand the overall trajectory of two-way engagement as it will open up new opportunity for cooperation in diverse areas.
The EU and India had first launched negotiations for the FTA in 2007, before the talks were suspended in 2013 due to a gap in ambition. The negotiations were relaunched in June 2022.
The EU, as a bloc, is India's largest trading partner in goods.
For the financial year 2024-25, India's total trade in goods with the EU was worth about USD 136 billion, with exports around USD 76 billion and imports at USD 60 billion.
The broad focus of the summit was on trade, defence and security, climate change, critical technologies and strengthening the rules-based global order.
India and the European Union have been strategic partners since 2004.
The proposed Security and Defence Partnership (SDP) will facilitate deeper defence and security cooperation between the two sides.
Prime Minister Narendra Modi on Tuesday said the India-EU free trade agreement is a blueprint for shared prosperity for the global good and will provide stability at a time when the world order is witnessing turmoil.
Modi was speaking at a joint press meet with European Council President Antonio Costa and European Commission President Ursula von der Leyen after the conclusion of negotiations for the India-EU free trade agreement.
"This is not just a trade agreement. This is a new blueprint for shared prosperity," Modi said, adding that India has concluded the largest free trade agreement in its history.
Noting that there is turmoil in the global environment, Modi said, "India-EU will provide stability to the world order...India-EU cooperation is a partnership for global good".
The Prime Minister further said the India-EU FTA will help increase cooperation in maritime sector and cybersecurity.
Costa said the India-EU FTA is the most ambitious agreement ever concluded for a market of 2 billion people.
He also said the India-EU summit gives a clear message to the world that India and the EU stand together as reliable partners.
Costa also said that "we count on you (Modi) to help create conditions for peace in Ukraine through dialogue, diplomacy".
Leyen said the India-Europe partnership will reduce strategic dependency at a time when global trade is being increasingly weaponised.
"We are delivering security for our people in an increasingly insecure world," she said, adding that India has risen, and Europe is truly glad about it.

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