India and the European Union have finalised a landmark free trade agreement that Prime Minister Narendra Modi described as a transformative step for global commerce. Speaking virtually during Indian Energy Week, the Prime Minister said the pact is being widely referred to as the “mother of all deals” and is expected to significantly boost manufacturing while strengthening services across both economies.
The Prime Minister said the agreement represents nearly twenty five percent of global gross domestic product and close to one third of worldwide trade. He added that the scale of the deal makes it one of the most consequential trade agreements in recent times. According to him, the pact will generate major opportunities for businesses and people in India and across European nations. He said the agreement will benefit India’s population of one point four billion as well as millions of people in Europe.
Modi said the India EU trade pact highlights deep cooperation between two of the world’s largest economies. He noted that sectors such as textiles, gems and jewellery, leather goods and manufacturing are expected to gain significantly. The Prime Minister also said the agreement strengthens shared values including democracy and the rule of law while reinforcing long term economic ties.
He added that the deal complements the India UK trade agreement and will further accelerate growth in manufacturing while providing strong support to the services sector. Officials said the agreement will help Indian exporters gain greater access to European markets and reduce barriers for industrial goods.
Negotiations between India and the European Union on a free trade agreement began in two thousand seven. Talks progressed unevenly over the years and were paused several times. The conclusion of negotiations now reflects changing global economic alignments and renewed focus on strategic partnerships.
European Commission President Ursula von der Leyen who is currently on a visit to India and attended the seventy seventh Republic Day celebrations in New Delhi described the agreement as the mother of all trade deals. She said the pact marks a new chapter in India EU relations and sends a strong signal of economic cooperation.
According to officials, the agreement will reduce tariffs on most consumer and industrial products traded between India and EU member states. Certain agricultural items are expected to remain outside the scope of tariff reductions. The deal will also allow enhanced market access for European automobile exports to India under defined limits.
The agreement is expected to deepen trade flows and strengthen long term economic engagement between India and Europe. Analysts believe it could reshape global trade dynamics and position both partners more strongly in a rapidly evolving world economy.