India and EU Sign Historic Free Trade Agreement

Prime Minister Narendra Modi announced on Tuesday the signing of the India-EU Free Trade Agreement (FTA), describing it as a “mother of all deals.” The agreement, finalized on Monday, represents a significant milestone for both regions, accounting for 25 percent of global GDP and one-third of global trade. Modi made the announcement while addressing the Indian Energy Week virtually, highlighting the transformative opportunities this deal brings to 140 crore Indians and millions of Europeans.

Building on Decades of Cooperation

The India-EU strategic partnership traces its roots back to 1962 when India established formal ties with the European Economic Community (EEC). Over six decades, this relationship has evolved from basic diplomatic engagement into a multifaceted alliance. Key milestones include the 1993 Joint Political Statement, the 1994 Cooperation Agreement, and the 2004 upgrade to a strategic partnership. The launch of the India-EU Trade and Technology Council in 2022 further strengthened their commitment to mutual prosperity.

A Summit for Enhanced Collaboration

Modi is set to host the 16th EU-India Summit in New Delhi today, with European Council President António Costa and European Commission President Ursula von der Leyen representing the EU. The summit will focus on strengthening collaboration across trade, security and defence, clean energy transition, and people-to-people cooperation. Both leaders attended India’s 77th Republic Day celebrations as guests of honor, underscoring the warmth of bilateral relations.

This comprehensive agreement marks a transformative moment in India-EU relations, promising enhanced economic cooperation and shared prosperity for both regions.