Our Bureau
New Delhi
As India and the European Union ink the historic Free Trade Agreement, popularly dubbed the ‘mother of all deals’, Prime Minister Narendra Modi hailed the deal saying that this would give a major boost for manufacturing in India. He also said that the services sector will also expand post this Free Trade Agreement with the European Council.
“Manufacturing will get a huge boost from this trade deal with the EU, and the services sector will also expand. The Free Trade Agreement will boost the confidence of every investor and businessman to invest in India,” the PM said as he inaugurated the India Energy Week being held in Goa.
European Commission President Ursula von der Leyen said that India and the European Union have concluded the much-anticipated free trade agreement, touted as the ‘Mother of all Deals’.
In a post on X on Tuesday she called the moment historic and expressed optimism on further strengthening the strategic relationship.
She said, “Europe and India are making history today. We have concluded the mother of all deals. We have created a free trade zone of two billion people, with both sides set to benefit. This is only the beginning. We will grow our strategic relationship to be even stronger.”
Union Commerce Minister described the agreement as “A formidable partnership for the world.”
On Tuesday, Prime Minister Narendra Modi met President of the European Council, Antonio Luis Santos da Costa and President of the European Commission, Ursula Von Der Leyen here in the national capital. The leaders held a bilateral meeting which took place at Hyderabad House, with EU High Representative for Foreign Affairs and Security Policy Kaja Kallas also in attendance.
The leaders displayed the spirit of bonhomie as they met at the Hyderabad House.
Earlier, the EU leaders paid tribute to the Father of the Nation, Mahatma Gandhi, by laying a wreath at his memorial in Raj Ghat, as part of their state visit to India.
The ceremony, held in the presence of senior Indian officials, was part of their ongoing state visit and coincided with the 16th India-EU Summit in New Delhi, which will be co-hosted by Prime Minister Narendra Modi.
The European leaders also signed the guestbook at the memorial site after the wreath-laying ceremony and paid floral tributes to the Mahatma.
European Council President Antonio Costa shared visuals from his visit to Rajghat and reflected upon the timeless values of Mahatma Gandhi. He said, “Paying tribute to Mahatma Gandhi. His words continue to resonate with the same force today as in the past: “Peace will not come out of a clash of arms but out of justice lived and done by unarmed nations in the face of odds.”
The visit comes at a time when both sides have concluded their discussion of a free trade agreement, which is expected to strengthen their shared commitment to democracy and the rule of law.
Prime Minister Narendra Modi on Tuesday hailed the India-European Union Free Trade Agreement (FTA) as a perfect example of a partnership between two major economies of the world, noting that the landmark deal will create major opportunities for people, businesses and investors in both regions.
Referring to the recently signed agreement, PM Modi also said the deal has already drawn global attention and is being described as the “mother of all deals”.
“Yesterday a big agreement was signed between the European Union and India. People are calling this the mother of all deals. This agreement will bring major opportunities for the public in India and Europe. This is a perfect example of a partnership between two major economies of the world,” the Prime Minister said.
“This agreement empowers our shared commitment towards democracy and rule of law. This Free Trade Agreement with the European Union will also complement Britain and EFTA’s agreements…I congratulate the people of the nation for this,” he added.
India and the EU together represent almost one-fifth of global trade and around 25 per cent of the global population, highlighting the growing economic and strategic weight of the partnership. The EU and India are close partners working to promote economic prosperity, a rules-based international order and sustainable development.
Trade and investment remain central pillars of this relationship. In trade in goods, the EU is India’s second-largest trading partner, right after China and ahead of the United States, accounting for 11.5 per cent of India’s total goods trade.
As per official data, in 2024, EU-India trade in goods was valued at over Euro 120 billion. This included Euro 71.4 billion worth of EU imports from India and Euro 48.8 billion in EU exports to India. Over the last decade, bilateral trade in goods has doubled.
During this period, EU imports from India grew by 140 per cent, while EU exports to India increased by 58 per cent, showing the steady expansion of commercial ties. The main goods exported by the EU to India include machinery and appliances, transport equipment and chemicals. On the other hand, the EU primarily imports machinery and appliances, chemicals and fuels from India.
Trade in services has also seen strong growth. In 2024, EU-India trade in services was worth over Euro 66 billion, with more than Euro 37 billion in EU imports and around Euro 29 billion in EU exports. Over the past decade, trade in services between the two sides has more than doubled, recording a growth of 243 per cent.
Negotiations on a free-trade agreement between India and the EU started in 2007 and was relaunched in 2022. This agreement will boost bilateral trade and investment ties and drive shared prosperity.
Emphasising the broader global impact, PM Modi said the FTA would boost global confidence in India. “This Free Trade Agreement will further strengthen global confidence in India for businesses and investors across the world,” he said, adding that India is actively working on global partnerships across all sectors.
With the signing of the deal, India becomes the third Asian country to have such a deal with the EU after Japan and South Korea.
