Shahid K Abbas, New Delhi, Jan 27 (UNI) In a historic breakthrough set to reshape global trade flows, India and the 27-nation European union on Tuesday announced the conclusion of the long-awaited India–EU Free Trade Agreement (FTA), with Prime Minister Narendra Modi calling it “not just a trade agreement, but a new blueprint for shared prosperity.”
The announcement was made at a joint press conference in New Delhi following the 16th India–EU Summit, attended by European Commission President Ursula von der Leyen and European Council President António Costa. The deal, negotiated over nearly 20 years and re-energised since 2022, is being hailed as India’s biggest and most comprehensive free trade agreement to date.
“India today inked its biggest free trade deal with the 27-nation European Union. This is a milestone moment for 1.4 billion Indians and the citizens of Europe,” Prime Minister Modi said, describing the pact as a decisive step in strengthening the India-EU strategic partnership, which together represents around 25 per cent of global GDP.
The India–EU FTA is expected to significantly boost manufacturing, services, investment flows and job creation on both sides. Alongside the FTA, the two sides also announced agreements on a comprehensive mobility framework, as well as a security and defence partnership, underlining the growing strategic convergence between New Delhi and Brussels.
European Commission President Ursula von der Leyen termed the agreement a landmark achievement. “We delivered the mother of all deals,” she said, adding that the India–EU trade agreement “will create millions of jobs on both sides and open unprecedented opportunities for businesses and innovators.”
European Council President António Costa echoed the sentiment, calling trade a stabilising force in an uncertain world. “Trade is a crucial geopolitical stabiliser and a fundamental source of economic growth. With this agreement, we are creating a market for nearly two billion people,” Costa said.
Beyond trade liberalisation, leaders emphasised cooperation in clean energy, green transition, digital technologies and connectivity projects, including the ambitious India–Middle East–Europe Economic Corridor (IMEC).
“This partnership is a partnership for global good,” PM Modi said, stressing the shared commitment to multilateralism and international norms. “We are united in our belief that reform of global institutions is essential to address today’s challenges.”
In a reflective note, the Prime Minister linked the agreement to the deepening political trust between the two sides. “Kal ek aitihasik kshan tha, jab pehli baar European union ke leaders Bharat ke Ganatantra Diwas samaroh mein mukhya atithi ke roop mein shamil hue. Aaj, ek aur aeyitihasik avsar hai,” he said, underscoring the momentum in bilateral ties.
The European union is among India’s largest trading partners. In 2024–25, bilateral trade in goods stood at Rs 11.5 lakh crore (USD 136.54 billion), with India exporting Rs 6.4 lakh crore and importing Rs 5.1 lakh crore. Trade in services touched Rs 7.2 lakh crore (USD 83.10 billion). Together, India and the EU—respectively the world’s fourth and second largest economies—account for nearly one-third of global trade.
Officials said the FTA reflects a shared vision for a balanced, modern and rules-based economic partnership, positioning both sides as trusted partners committed to open markets, predictability and inclusive growth.
As PM Modi summed up, “Bharat Aur European union Ka Sahyog Kewal Arthik Nahi Hai, Ye Bhavishye Ki Vaishwik Vaiwasta Ko Adhik Resilient Aur Isthar Bananey Ki Dishas Mein Ek Nirnayak Kadam Hai ( India and Eureopean Union’s cooperation is not just economic alone, but it is a decisive step in building a resilient and strong global order.”
