PM Modi announced on January 27, 2026, at the India-EU Summit that the FTA has been signed, hailing it as the "mother of all deals"
Talks concluded on January 26 per Commerce Secretary Rajesh Agrawal; legal finalization ongoing, formal signing expected later 2026, entry into force early 2027.
The deal strengthens India-EU economic integration amid global uncertainties and positions India as a key player in diversified trade networks.
PM Modi Says EU Agreement Signed, Hails ‘Mother Of All Deals’
This agreement represents 25 per cent of the global GDP and 1/3rd of global trade.”
Summary
During the 16th India-EU Summit in New Delhi, Prime Minister Narendra Modi confirmed the signing of a landmark Free Trade Agreement (FTA) with the European Union, describing it as the "mother of all deals." Addressing the gathering alongside European Commission President Ursula von der Leyen and European Council President António Costa—who were chief guests at India's 77th Republic Day celebrations—Modi stated, “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...This agreement represents 25 per cent of the global GDP and 1/3rd of global trade.”
The announcement follows Commerce Secretary Rajesh Agrawal's confirmation on January 26 that official-level negotiations had successfully concluded after nearly 18 years (launched in 2007, relaunched in 2022). The deal is described as "balanced, forward-looking, and mutually beneficial," with legal scrubbing of the text now underway. Formal signing is targeted for later in 2026 (potentially within 5-6 months), with implementation expected early 2027, subject to approvals from the European Parliament and India's Union Cabinet.
The FTA covers over 90% of goods with reduced or eliminated tariffs, liberalizes services in areas like telecommunications, professional services, and transport, and aims to boost bilateral trade (already over $190 billion in goods and services in 2024/25). Key Indian concessions include phased duty reductions on certain EU cars (e.g., from up to 110% to 40% initially for models above €15,000), while sensitive sectors like agriculture and dairy remain protected or excluded. The pact is seen as a strategic hedge against global protectionism, including US tariffs, and will create a free trade area for roughly 2 billion people.
Commerce and Industry Minister Piyush Goyal had earlier dubbed it the "mother of all deals," echoing von der Leyen's emphasis on its scale. The summit also advanced discussions on security, defense partnership, and mobility frameworks amid broader strategic ties.
Published At: