India-EU free trade pact sealed, marks major shift in global trade

Prime Minister Narendra Modi on Tuesday (January 27) said that India has signed the much-anticipated trade deal with the European Union (EU).

Addressing a joint press conference with European Commission President Ursula von der Leyen and European Council President Antonio Costa, PM Modi further stated that the India-EU free trade agreement supply chains globally.

"Today, India has concluded the biggest Free Trade Agreement in its history. On January 27, India signed this FTA with 27 European nations...This will boost investment, form new innovation partnerships and strengthen supply chains at the global level...This is not just a trade agreement, it is a blueprint for shared prosperity," he said as quoted by ANI.

"Yesterday was a historic moment when the European Union leaders took part in India's Republic Day celebrations for the first time. Today is another such moment, when two major democratic powers are adding a decisive chapter in their relationship," he added.

'India-EU ties expanded rapidly'

The Prime Minister further stated that ties between India and the European Union had expanded rapidly in recent years, driven by shared democratic principles, economic complementarity and close people-to-people links. He noted that bilateral trade has reached EUR 180 billion.

“Over the past few years, relations between India and the European Union have grown exponentially. Based on the shared values of democracy, economic synergy, and strong people-to-people ties, our bilateral strength has reached new heights. Today, our trade stands at EUR 180 billion, and more than eight lakh Indians are living in EU nations and contributing to their societies,” said PM Modi.

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Pointing to the widening scope of engagement, Modi said cooperation now spans strategic technology, clean energy, digital governance and development partnerships, resulting in decisions aimed at broad-based benefits.

“From strategic technology to clean energy, from digital governance to development partnerships, we have established new avenues of cooperation. Building on these achievements, we have taken decisions that will benefit every section of society,” he said.

'New opportunities for farmers, small businesses'

Describing the pact as the largest free trade agreement India has concluded, the Prime Minister said it would open fresh opportunities for farmers, small businesses and service providers.

“Today, India has concluded the biggest Free Trade Agreement in its history. This agreement will help our farmers and small entrepreneurs, enable greater access to European markets, and deepen cooperation in the services sector. The FTA will boost investment between India and the EU, foster new innovation partnerships, and strengthen supply chains. This is not just a trade agreement; it is a blueprint for shared prosperity,” he added.

Also Read: Explained: How Europe expects India-EU trade deal to boost its economy

Earlier, Modi held delegation-level talks with Ursula von der Leyen and António Costa during the 16th India-EU Summit. He later reiterated at India Energy Week that the agreement, often described as the “mother of all deals,” underscored the partnership between two major economies. India also signed a Security and Defence Partnership with the European Union, becoming the third Asian country after Japan and South Korea to do so.