From Talks To Treaty: India And EU Close Historic Free Trade Agreement

 

New Delhi : India and the European Union on Tuesday concluded a long-awaited Free Trade Agreement (FTA), marking one of the most significant milestones in India’s global trade engagement in recent years.

Announced at the 16th India EU Summit by Prime Minister Narendra Modi and European Commission President Ursula von der Leyen, the pact brings together two of the world’s largest economies and is expected to reshape trade flows, expand market access and deepen strategic ties.

With sweeping tariff reductions, new openings for services and mobility, and safeguards for sensitive sectors, the agreement is being positioned as a boost for exports, jobs and India’s manufacturing ambitions, while laying the groundwork for a more resilient and future-oriented economic partnership. Stakeholders from the textile sector, believe that their trade will double in the next 3 years post this FTA.

 

"Today, India has concluded the biggest Free Trade Agreement in its history. On 27th January, 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," PM Modi said shortly after the summit.

Separately, in a post on X, the Prime Minister called the deal a "milestone" and said the day would be "remembered forever".

 

"Today is a day that will be remembered forever, marked indelibly in our shared history. European Council President António Costa and European Commission President Ursula von der Leyen and I are delighted to announce the conclusion of the historic India-EU Free Trade Agreement. This is a milestone in our relations which will: Strengthen our economic ties, Create jobs for our youth Opportunities for our businesses, Foster shared prosperity, Build stronger global supply chains," he said in a post on X.

 

EU Chief Ursula von der Leyen, in her address after the Summit, said the finalisation of the trade deal was a "strong message that cooperation is the best answer to global challenges."

"We did it. We delivered the mother of all deals. We are creating a market of 2 billion people. This is the tale of two giants, the world's second and fourth largest economies. Two giants who choose partnership in a true win-win fashion. A strong message that cooperation is the best answer to global challenges," she said.

India and the EU are the 4th and 2nd largest economies respectively, comprising 25 percent of Global GDP and accounting for one third of global trade.