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FTA
PM Modi greeting EU president Ursula von der Leyen on signing of FTA. Photo: Screen-grab/YouTube video

​Mother of all deals delivered! India and EU sign historic FTA — Modi calls it a ‘blueprint for shared prosperity’

| @indiablooms | Jan 27, 2026, at 02:14 pm

New Delhi/IBNS: In a historic development, India on Tuesday inked a Free Trade Agreement (FTA) with the European Union (EU), easing concerns over tariffs imposed by the United States and recurring trade-related remarks by President Donald Trump.

The landmark deal was announced in the presence of Prime Minister Narendra Modi and European Commission President Ursula von der Leyen.

India and UK announce their Free Trade Agreement (FTA) in New Delhi. Photo: Screen-grab/YouTube video

Often described as the “mother of all trade deals”, the agreement aims to reduce or eliminate tariffs on over 90 per cent of goods traded between the two economies, expand market access and deepen economic integration between India and the EU.

Signed nearly two decades after negotiations began, the FTA is expected to significantly benefit Indian farmers and small businesses amid global trade uncertainties and persistent geopolitical tensions.

“This historic agreement will grant Indian farmers and small businesses easier access to European markets. It will create new opportunities in manufacturing and further strengthen cooperation in the services sector,” Prime Minister Modi said at the press conference.

“Moreover, this FTA is set to boost investment between India and the EU, foster new innovation partnerships, and enhance global supply chains. This agreement is not just about trade—it represents a blueprint for shared prosperity,” he added.

PM Modi addressing the press conference. Photo: BJP/X

The deal is being viewed as strategically crucial amid rising global trade tensions, helping India diversify its trade partnerships beyond traditional markets while strengthening economic ties with the EU—one of its largest trading partners.

Lauding Ursula von der Leyen’s presence as the chief guest at India’s 77th Republic Day celebrations, Modi noted the “remarkable progress” in the India-EU partnership, driven by shared democratic values, economic synergy and strong people-to-people ties.

“Our relationship is reaching new heights. Currently, bilateral trade between India and the EU stands at €80 billion, and more than 800,000 Indians now reside across various European countries,” the Prime Minister said.

 
'We did it, we delivered the mother of all trade deals' 
 
European Commission President, Ursula von der Leyen, said: “The EU and India make history today, deepening the partnership between the world's biggest democracies. We have created a free trade zone of 2 billion people, with both sides set to gain economically.
 
"We have sent a signal to the world that rules-based cooperation still delivers great outcomes. And, best of all, this is only the start - we will build on this success, and grow our relationship to be even stronger.”
 
European Commission President, Ursula von der Leyen addressing the press conference. Photo: Screen-grab/YouTube video
"PM Modi, we did it, we delivered the mother of all (trade) deals," she added in much appreciation of the Prime Minister. 

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