‘Mother of all deals’: PM Modi says India–EU FTA is for 'ambitious India'

Speaking to reporters outside Parliament on the second day of the Budget Session, Modi said the agreement offers a glimpse into India’s economic future.

"At the very beginning of this quarter, the free trade agreement between India and the European Union is a glimpse of how bright the coming century will be. This free trade deal is for ambitious India," the Prime Minister said.

President Droupadi Murmu on Wednesday addressed a joint sitting of Parliament amid Opposition protests over the contentious VB-G RAM G Act, which replaced and modernised the MGNREGA.

In a historic development, India on Tuesday inked a Free Trade Agreement with the European Union, easing concerns over global tariff uncertainties and recurring trade-related remarks by US President Donald Trump.

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

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.

Signed nearly two decades after negotiations began, the FTA is expected to significantly benefit Indian farmers and small businesses amid global trade volatility and 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," Modi said on Tuesday.

"Moreover, this FTA will boost investment flows, foster innovation partnerships and strengthen global supply chains. This agreement is not just about trade—it is a blueprint for shared prosperity," he had added.

The deal is being seen as strategically crucial as India looks to diversify trade partnerships beyond traditional markets while strengthening ties with the EU, one of its largest trading partners.