Parwinder Sandhu
New Delhi, Jan 27 (UNI) Calling the visit of the Presidents of the European Council and the European Commission “no ordinary diplomatic engagement,” Prime Minister Narendra Modi on Tuesday said it marks the beginning of “a new era in India–European union relations”, reflecting deeper strategic alignment and expanded cooperation across key sectors.
Stating that Indian investment in the EU has reached almost Euro 40 billion, the PM said that today, there is deep cooperation between India and European companies in every sector, including R&D, manufacturing, and services.
Modi said that the time had come to transform India–EU ties, adding, “With this vision, we have today finalised a comprehensive FTA.” He noted that the agreement would provide easier access to the European union market for India’s labour-intensive sectors, listing textiles, gems and jewellery, auto parts, and engineering goods among the key beneficiaries.
He also underlined that India’s thriving services sector would be major gainers, with IT, education, traditional medicine and business services expected to benefit in particular.
He noted that in a world where trade, technology and critical minerals were increasingly being weaponised, both sides must work together to de-risk dependencies and build more reliable supply chains, particularly in areas such as electric vehicles, batteries, semiconductors and APIs.
“In today’s world, business, technology and critical minerals are being weaponised. Together, we need to de-risk our inefficiencies. Can our business community reduce external dependence on EVs, batteries, chips and APAs? Can we create a reliable supply chain? Second, the focus of India and the European union has been on defence industries and frontier technology.”
Highlighting defence and frontier technologies as the second key area, the Prime Minister urged greater industry partnerships in sectors including defence, space, telecom and artificial intelligence.
“A clean and sustainable future is the priority of both. From green hydrogen to solar energy and smart grid, we need to increase joint research and investment in all areas. Both industries should work together on small modular reactors and sustainable mobility. Along with this, solutions should be developed in water management, circular economy and sustainable agriculture,” he added further.
Emphasising the responsibility of industry leaders, he said the moment called for stronger cooperation to build trust, scale and shared prosperity.
“The ball is on your court. With your cooperation, we will achieve trust, reach and scale. With your efforts, we will be able to achieve shared prosperity. Let us combine our capabilities and become a double engine of growth for the whole world,” the Prime Minister said.
“Today, there is great upheaval in global business. Every company is re-evaluating its market strategy and partnerships. At such a time, this FTA is a clear and positive message for the business world. It is a clear invitation for the business communities of both sides to build a capable, reliable, and future-oriented partnership,” he said.
Urging both sides to scale up collaboration, he added, “Let us combine our capabilities and become a double engine of growth for the whole world.”
He said that India and the European union are in the process of finalising what would be the largest Free Trade Agreement in India’s history, alongside hosting a major India–EU Business Forum bringing together leading CEOs. These milestones, he noted, reflect an unprecedented level of alignment between the world’s two largest democracies.
He said that the alignment between India and the European union was not accidental, adding, “As market economies, we share common values, we have shared priorities for global stability, and as open societies, there is a natural connection between our people.”
“In the last 10 years, our trade has doubled to reach Euro180 billion,” he said, while also highlighting that more than 6,000 European companies were operating in India.
He further stated that European union investment in India had crossed Euro 120 billion, and added that “1,500 Indian companies are present in the European Union.”
Prime Minister Narendra Modi expressed confidence that businesses would fully leverage the opportunities created by the India–EU Free Trade Agreement, saying the partnership would open multiple avenues for deeper commercial collaboration.
