(From left) European Council President Antonio Costa, European Commission President Ursula von der Leyen and Prime Minister Narendra Modi pose during a photo opportunity ahead of their meeting at the Hyderabad House in New Delhi
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REUTERS/ALTAF HUSSAIN
In a landmark announcement this morning, Prime Minister Narendra Modi confirmed that India and the European Union have reached an agreement on a highly ambitious free trade agreement. Hailing it as the ‘mother of all deals,’ the PM noted that the pact will open major economic opportunities for over 1.9 billion people across both regions.
“Yesterday, a big agreement was reached between the European Union and India. People across the world are discussing it and it is being referred to as the mother of all deals. This agreement will bring major opportunities for 140 crore Indians and crores of people in EU nations,” the PM said at the India Energy Week on Tuesday.
EU President Ursula von der Leyen and European Council President Antonio Costa will participate with Modi in the India-EU Summit where the conclusion of the India-EU FTA negotiations will be formally announced.
“This is a perfect example of partnership between two major economies of the world…This agreement represents 25 per cent of the global GDP and one-third of global trade. This pact, also strengthens our shared commitment towards democracy and rule of law,” Modi said.
India’s FTA with the EU will also complement the country’s trade pacts with the UK and the EFTA bloc (Iceland, Liechtenstein, Norway and Switzerland), the PM added
Indian exporters of labour-intensive items such as textiles, garments, leather, footwear, gems & jewellery, chemicals, toys and sports goods, facing much higher tariffs than the EU average of 3.8 per cent, are expected to make significant gains from the pact, industry sources shared.
Similarly, EU exporters of goods to India, especially from protected sectors such as wines & spirits and automobiles, are expected to gain greater market access, although subject to various caveats and restrictions including quotas (for automobiles), the industry sources added.
Published on January 27, 2026
