New Delhi
Prime Minister Narendra Modi on Tuesday announced that India and the European Union have successfully concluded a Free Trade Agreement (FTA), describing it as a landmark pact covering nearly a quarter of the global economy and about one-third of worldwide trade.
Addressing the Indian Energy Week virtually, Modi termed the agreement a transformational step that would unlock vast opportunities for both India’s population of 140 crore and millions across Europe. Referring to it as what many are calling the “mother of all trade deals,” he said the pact reflects deep economic coordination between two major global players.
“I would like to share an important development. Just yesterday, India and the European Union reached a major agreement,” the prime minister said, underlining the scale and significance of the deal. According to him, the FTA strengthens global trade architecture and reinforces supply chain resilience.
Modi noted that the agreement would work in synergy with India’s existing trade pacts with the United Kingdom and the European Free Trade Association (EFTA), further integrating India into global markets.
Highlighting sectoral benefits, the prime minister said industries such as textiles, gems and jewellery, leather, footwear and services stand to gain substantially. He added that the agreement would accelerate domestic manufacturing while providing a strong push to India’s services sector.
“The FTA will enhance global confidence in India as a reliable business destination and investor-friendly economy,” Modi said, emphasising that India continues to expand strategic partnerships across sectors worldwide.
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Bilateral trade remains a key pillar of India-EU relations. Total trade between the two sides crossed USD 190 billion in 2024-25, with India exporting goods worth USD 75.9 billion and services worth USD 30 billion to the EU. In comparison, EU exports to India stood at USD 60.7 billion in goods and USD 23 billion in services.
