Prime Minister Narendra Modi stated that India and the European Union (EU) are on the verge of sealing a landmark free trade agreement that could reshape economic ties between the two blocs, calling it a pact of global significance that will unlock wide-ranging opportunities for businesses and citizens on both sides.
Addressing Indian Energy Week virtually, Modi said the proposed India-EU trade pact is being described internationally as the “mother of all deals”, given its sheer economic scale and strategic importance. According to the Prime Minister, the agreement will directly benefit India’s 1.4 billion people as well as millions across European countries. “This agreement is being discussed around the world as the mother of all deals,” Modi said. “It will create tremendous opportunities for people and enterprises in India and Europe.”
The Prime Minister underlined that the deal covers economies accounting for roughly a quarter of global gross domestic product and nearly one-third of global trade. He said the agreement reflects a deepening partnership rooted not just in commerce, but also in shared democratic values and respect for the rule of law.
PM Modi added that the trade pact would provide a major boost to India’s manufacturing base while strengthening services trade. Key domestic sectors expected to gain include textiles, gems and jewellery, and leather goods. He also noted that the India-EU agreement would work in tandem with the recently concluded India-UK trade deal, further expanding India’s integration with major global markets.
India and the European Union have now wrapped up negotiations for the proposed free trade agreement after years of intermittent talks that first began in 2007. Officials on both sides have described the pact as balanced, modern and forward-looking, with a formal announcement expected imminently.
The conclusion of the negotiations comes against the backdrop of a rapidly changing global trade order, shaped in part by policy shifts during former US President Donald Trump’s tenure.
Ursula von der Leyen, President of the European Commission, who is currently visiting India and attended the country’s 77th Republic Day celebrations as chief guest, has also hailed the agreement as the “mother of all trade deals”.
Under the proposed framework, tariffs on a large share of industrial and consumer goods traded between India and EU member states are expected to be reduced. However, some agricultural products are likely to remain outside the scope of tariff cuts. The agreement is also set to provide European carmakers with greater access to the Indian market, though exports will be subject to a volume cap.
