New Delhi|Jan, 27 : Prime Minister Narendra Modi on Tuesday announced the signing of the India-European Union Free Trade Agreement (FTA), describing it as a landmark deal that accounts for 25 per cent of global GDP and one-third of global trade. The announcement was made during his virtual address at the India Energy Week 2026 conclave.
“I am informing you about a big development … a significant agreement was signed between India and Europe yesterday (Monday),” PM Modi said, congratulating all stakeholders involved. He added, “People are discussing it as the ‘mother of all deals,’ and this agreement has brought a lot of opportunities for 140 crore Indians and crores of Europeans.”
Highlighting the strategic importance of the pact, the Prime Minister called it “an excellent example of coordination between two economies of the world.” He emphasised that the agreement will complement existing deals with Britain and the European Free Trade Association (EFTA), strengthening global trade and supply chains.
“This free trade agreement will strengthen confidence in India for every business and every investor in the world,” PM Modi remarked, noting that the deal will provide a significant boost to India’s manufacturing and services sectors. He also extended felicitations to youth and professionals from key sectors such as textiles, gems and jewellery, leather, and shoes, who stand to benefit from the agreement.
Commerce Secretary Rajesh Agrawal had on Monday confirmed that the negotiations have concluded successfully and the formal announcement would be made on January 27, with the agreement expected to take effect next year after legal formalities.
The deal is hailed as a milestone in India-EU relations and is anticipated to deepen economic ties, enhance bilateral trade, and create new opportunities for industries on both sides.
European Commission President Ursula von der Leyen, who attended India’s Republic Day celebrations, underscored the importance of a prosperous India for global stability and security.
The India-EU FTA is being viewed as a historic step that will not only boost trade volumes but also foster stronger partnerships in manufacturing, services, and supply chain resilience, further integrating India into the global economy.
