Prime Minister Narendra Modi described the India–EU Free Trade Agreement as the ‘mother of all deals’, saying it represents 25% of global GDP and one-third of global trade
The agreement caps over two decades of negotiations and is expected to boost market access, exports, and strategic ties
The deal comes at a crucial time for Indian exporters, offering relief amid US tariffs and supporting India’s push to diversify trade partnerships
Prime Minister Narendra Modi on Tuesday announced the signing of a free trade agreement between India and the European Union, while calling it a “mother of all deals.” Modi said the agreement would open up massive opportunities for people and businesses on both sides.
The European Union is India’s largest trading partner, with bilateral trade totalling $140 billion in 2024.
1 January 2026
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“Yesterday, a big agreement was signed between the European Union and India. People are calling this the mother of all deals. This agreement will bring major opportunities for the public in India and Europe. This is a perfect example of a partnership between two major economies of the world,” Modi said. “This agreement will bring major opportunities for the 140 crore people of India and the crores of people in Europe.”
He further added that the agreement represents 25% of global GDP and one-third of global trade. At the 16th India–EU Summit scheduled for today, New Delhi and Brussels will formally announce the long-anticipated agreement.
The signing of the India–EU FTA marks the culmination of negotiations spanning over two decades. Bilateral trade talks between India and the bloc began in 2007 and were initially called the Broad-based Bilateral Trade and Investment Agreement (BTIA). However, the negotiations were discontinued in 2013 and later relaunched in 2022 amid evolving political and economic interests.
The signing of the trade deal also comes at a time when India is actively seeking to diversify its export markets and strengthen its defence and security preparedness. With a sweeping 50% reciprocal tariff imposed by Washington still in place, the India–EU trade deal is expected to provide relief to Indian exporters hit by US tariffs and reduce India’s dependence on the US market.
Speaking in an interview with the Hindustan Times, European Council President Antonio Costa described the deal as an important geopolitical stabiliser. “Our trade agreement is a very important geopolitical stabiliser and a showcase of how it’s possible to protect international rules-based trade,” Costa said on Monday.
The two side started negotiations on the FTA in 2007, but these were paused in 2013 due to differences in ambition, before being revived in June 2022.
