New Delhi:
Prime Minister Narendra Modi on Tuesday described the India–European Union free trade agreement as a transformative step that will significantly strengthen manufacturing, expand services, and unlock new opportunities for businesses and workers on both sides.
Speaking virtually at Indian Energy Week, the Prime Minister said the scale of the proposed pact—covering economies that together account for nearly a quarter of global GDP—has led many around the world to call it the “mother of all deals.”
“This landmark agreement between India and the European Union is being discussed globally as a historic deal. It will create enormous opportunities for India’s 1.4 billion people and for millions across Europe,” Modi said, underlining its potential to reshape economic ties between the two regions.
According to the Prime Minister, the agreement will provide a major boost to India’s manufacturing ecosystem while also strengthening services trade. Key sectors expected to benefit include textiles, gems and jewellery, leather goods, and other labour-intensive industries, alongside services where India has a strong global footprint.
Modi also highlighted the strategic importance of the deal, noting that it brings together two of the world’s largest democratic economies. “This agreement represents around 25 per cent of global GDP and nearly one-third of global trade. It reinforces not just economic cooperation, but also our shared commitment to democracy and the rule of law,” he said.
The India–EU Free Trade Agreement is expected to complement other recent trade initiatives, including India’s deal with the United Kingdom, creating a broader network of market access for Indian exporters and global investors.
About the India–EU Free Trade Agreement
India and the European Union have concluded negotiations on the long-pending FTA after years of intermittent talks that first began in 2007. Both sides have described the agreement as balanced and forward-looking, reflecting changing global economic alignments and supply chain priorities.
The breakthrough comes amid shifting global dynamics and renewed emphasis on trusted trade partnerships. European Commission President Ursula von der Leyen, currently on a visit to India and the chief guest at the Republic Day celebrations, has also referred to the pact as the “mother of all trade deals.”
Once formally announced, the agreement is expected to reduce tariffs on a wide range of consumer and industrial goods traded between India and EU member states. While some sensitive agricultural products may remain outside its scope, the deal is set to offer the EU improved access for automobile exports to India, subject to certain limits.
With negotiations now wrapped up, the focus shifts to formal approval and implementation—steps that could mark a new chapter in India–EU economic relations and reshape trade flows between two of the world’s most influential economic blocs.
