India, EU Sign Historic Free Trade Deal; PM Modi Calls It ‘Mother of All Deals’

New Delhi, Jan 27: India and the European Union today finalised a landmark Free Trade Agreement (FTA), hailed by Prime Minister Narendra Modi and European Commission President Ursula von der Leyen as the “mother of all deals.” The agreement marks India’s biggest trade pact with the 27-member EU bloc.

The deal was concluded during delegation-level talks in New Delhi between PM Modi, President of the European Council Antonio Costa, and President of the European Commission Ursula von der Leyen. Alongside the FTA, seven agreements were exchanged covering trade, security, defence partnership, mobility, disaster risk management, and green hydrogen.

PM Modi said the agreement is not merely a trade deal but a blueprint for shared prosperity, boosting investment, forging innovation partnerships, and strengthening global supply chains. “This FTA strengthens India-EU relations and opens new avenues for economic and strategic collaboration,” he said.

EU leaders welcomed the pact as a historic milestone. Antonio Costa termed the agreement a “new chapter” for cooperation, emphasizing joint efforts towards prosperity and security. Ursula von der Leyen praised India’s rise and the enhanced stability and prosperity the partnership brings globally, noting her honour at being Chief Guest at the Republic Day parade.

The European Union is India’s largest trading partner in goods. In 2024-25, bilateral trade reached around $136 billion, with India exporting $76 billion and importing $60 billion worth of goods.

This FTA is expected to significantly boost economic and strategic ties between India and Europe, opening the path for deeper engagement across multiple sectors. (Agencies)