India and EU conclude free trade agreement negotiations, Modi calls it "mother of all deals"

2026-01-27 - 10:38

Indian Prime Minister Narendra Modi announced on Tuesday that India and the European Union have successfully concluded negotiations on a comprehensive free trade agreement (FTA). In a virtual address to the Indian Energy Week summit, Modi described the pact as a landmark achievement that represents about 25% of global GDP and one-third of world trade. “People in the world are discussing it as a ‘mother of all deals,’” he stated. High-Level Talks and Next Steps The announcement came ahead of Modi’s scheduled meetings in New Delhi with European Commission President Ursula von der Leyen and EU Council President Antonio Costa. Indian Commerce Secretary Rajesh Agrawal confirmed on Monday that the negotiations had been finalized, noting the agreement is expected to be formally signed later this year and could come into effect early next year. Significance for Bilateral Trade The EU is India’s largest goods trading partner, with bilateral trade volume reaching approximately $136 billion in the 2024–25 fiscal year. The FTA is anticipated to significantly boost economic ties, enhance market access, and foster greater investment flows between the two economies. Modi emphasized that the deal serves as “an excellent example of coordination between the two economies of the world.”