India and the European Union (EU) have signed a landmark Free Trade Agreement (FTA), described by Prime Minister Narendra Modi as the “mother of all trade deals,” marking a major milestone in global economic cooperation. The Prime Minister said the agreement will open up vast opportunities for people and businesses in both India and Europe, while delivering significant gains to key sectors, including oil and gas.
Calling it a powerful example of partnership between two of the world’s largest economies, Prime Minister Modi noted that the pact represents nearly 25 per cent of global GDP and about one-third of global trade. He said the agreement would give a major boost to India’s manufacturing sector, accelerate growth in services, and strengthen global investor confidence in the Indian economy.
The India–EU FTA is expected to complement India’s trade agreements with the UK and the European Free Trade Association (EFTA), helping to strengthen global trade flows and supply chains. The Prime Minister подчеркിച്ച that India is expanding its global partnerships across sectors, positioning itself as a reliable destination for businesses and investors worldwide.
The agreement was signed in the presence of European Council President António Costa and European Commission President Ursula von der Leyen, who are visiting India as chief guests for the Republic Day celebrations. The deal comes after nearly 18 years of negotiations, finally reaching fruition amid shifting global trade dynamics.
Negotiations on the FTA began in 2007 but were put on hold in 2013 due to technical issues. Talks resumed in June 2022 and were accelerated in the backdrop of the United States imposing a 50 per cent tariff on Indian goods. Once legal vetting is completed, the agreement will come into force, requiring only Union Cabinet approval on the Indian side.
According to MK Global Financial Services, India’s exports to the European Union are projected to rise to USD 50 billion by 2031 under the new agreement, signalling a major leap forward in India–EU economic relations.
