India and the European Union (EU) have signed a free trade agreement, India’s prime minister, Narendra Modi, announced in a statement on Tuesday, January 27.
Describing it as the “mother of all deals” which represents 25 percent of global GDP, Modi said that the pact would create significant opportunities for people and businesses across both regions and that it stands as a strong example of cooperation between two of the world's largest economies.
The FTA covers trade in goods and services, investment protection, intellectual property, sustainability, labor standards, and regulatory cooperation. While negotiations have concluded, formal ratifications by EU member states and the European Parliament are still pending.
India-EU goods trade exceeded €120 billion in 2024, underlining the agreement’s economic weight. India is the ninth largest trading partner of the EU, accounting for 2.4 percent of the bloc’s total trade in goods.
Modi and European Commission President Ursula von der Leyen are expected to make a joint statement at the India-EU summit in New Delhi, later on January 27, revealing the details of the deal that had been in the making for nearly two decades.
This is India’s fourth major trade deal since the US, India’s biggest export market and a major trading partner, imposed steep tariffs in August. It has also entered into trade pacts with the UK, Oman and New Zealand.
