Although the deal was 20 years in the making, the return of US President Donald Trump had accelerated the need to seal the deal.

European companies in India are prepping for a fresh investment cycle and an overwhelming majority of these firms are planning to expand and deepen manufacturing in the country, and also embed India more firmly into global supply chains

The Confederation of All India Traders (CAIT) has welcomed the landmark India-European Union Free Trade Agreement (FTA), calling it a historic breakthrough that could reshape India's trade landscape.

Speaking at a joint news conference in New Delhi with European Commission President Ursula von der Leyen and European Council President Antonio Costa, the Indian leader said the partnership with the EU "will strengthen stability in the international system" at a time of "turmoil in the global order."

"Europe and India are making history today. We have concluded the mother of all deals," von der Leyen said in a post on X.

In a speech later, she said the accord was a tale of "two giants" who chose partnership "in a true win-win fashion." She also said it sends "a strong message that cooperation is the best answer to global challenges."

The deal is expected to further integrate supply chains and strengthen joint manufacturing power between the two economies. It will also cut up to 4 billion euros ($4.7 billion) in annual tariffs for exporters and create jobs for millions of workers in India and in Europe.

(AP)

In a veiled attack on US President Donald Trump, Canada's Minister of Energy and Natural Resources Tim Hodgson on Tuesday said India's free trade agreement with the European Union is a "perfect" answer to global hegemons that use tariffs and economic integration as tools of coercion.

Stating that Canada is keen to boost energy exports to India in a bid to diversify its customer base and cut dependence on supply to the United States, he said Ottawa will "never use our energy for torture".

Speaking at India Energy Week 2026, Hodgson said the global economy is undergoing a sharp rupture rather than a gradual transition, as major powers move away from a rules-based, multilateral trading system towards a more mercantilist approach.

(PTI)

India is expected to gradually increase its market share from 5 per cent to 8-9 per cent in the EU's ready-made garment (RMG) imports, unlocking an incremental annual export opportunity of nearly $4-4.5 billion over the medium term, a report showed on Tuesday.

The European Union (EU) is the world's largest RMG market, with imports of nearly $84 billion (excluding trade among EU countries) in 2024, according to the report by CareEdge Ratings.

India currently exports $4.5-5 billion of RMG to the EU, holding 5 per cent share of the EU's RMG market. Unlike India, key competitors such as Bangladesh, Turkey, Vietnam, Pakistan, and Cambodia enjoy duty-free access.

(IANS)

The deal is expected to further integrate supply chains and strengthen joint manufacturing power between the two economies. It will also cut up to 4 billion euros ($4.7 billion) in annual tariffs for exporters and create jobs for millions of workers in India and in Europe.

A formal signing of the deal could come later this year after officials go through the legal details of the text. It is expected to go into effect early next year after the EU Parliament ratifies it.

India is expected to reduce or eliminate tariffs for 96.6% of EU exports, while Brussels will reciprocate with similar reductions in phases that eventually cover nearly 99% of India’s shipments by trade value, according to statements from both sides.

(AP)

India and the European Union on Tuesday sealed a landmark free trade agreement -- billed as "mother of all deals" -- with Prime Minister Narendra Modi and the top EU leadership unveiling a grand agenda to leverage trade and defence to shore up ties and work towards a rules-based world order.

The two sides also inked two crucial pacts -- one on security and defence collaboration and another on the mobility of Indian talent to Europe -- after Prime Minister Modi hosted EU leaders Ursula von der Leyen and Antonio Costa for summit talks.

In line with their vision for a rules-based global order, India and the 27-nation bloc rolled out a joint comprehensive strategic agenda for the next five years and firmed up a total of 13 pacts, including one on the conclusion of negotiations for the FTA.

(PTI)

Prime Minister Narendra Modi on Tuesday said that the conclusion of the India-EU Free Trade Agreement (FTA) marks a significant milestone in their relations, and also thanked all the leaders of Europe over the years for their constructive spirit and commitment in making this possible.

"This agreement will deepen economic ties, create opportunities for our people and strengthen the India-Europe partnership for a prosperous future," PM Modi said in a post on X after the "mother of all deals" was reached.

India and Europe have taken an important step forward today. The free trade agreement between India and the EU opens new pathways for growth, investment, and strategic cooperation, PM Modi added.

(IANS)

The Confederation of All India Traders (CAIT) has welcomed the landmark India-European Union Free Trade Agreement (FTA), calling it a historic breakthrough that could reshape India's trade landscape.

The Confederation of All India Traders (CAIT) has welcomed the landmark India-European Union Free Trade Agreement (FTA), calling it a historic breakthrough that could reshape India's trade landscape, accelerate exports and open unprecedented opportunities for millions of traders, MSMEs and artisans across the country.

Reacting to the agreement, Sumit Agarwal, National Joint Secretary General of CAIT, said the deal reflects India's growing economic clout and negotiating strength on the global stage under the leadership of Prime Minister Narendra Modi. He described the agreement as a clear signal of India's confident emergence as a global trade powerhouse.

Bilateral trade between India and the EU stood at $136.5 billion in 2024-25. The two sides hope to increase that to about $200 billion by 2030, officials said.

“Ultimately, the agreement is about creating a stable commercial corridor between two major markets at a time the global trading system is fragmenting,” said Indian trade analyst Ajay Srivastava.

The EU is still reeling from the aggressive approach of its once-stalwart ally across the Atlantic. There’s a widespread sense of betrayal across the 27-nation bloc from Trump’s onslaught of higher tariffs, embrace of far-right parties, and belligerence over Greenland.

Brussels has accelerated its outreach to markets around the world. Over the past year, von der Leyen has signed deals with Japan, Indonesia, Mexico, and South America under the catchphrase “strategic autonomy”, which in practice is akin to decoupling from a U.S. seen by most European leaders as erratic.

(AP)

EU chiefs and PM Narendra Modi hope the pact will help shield against challenges from the world's two leading economies, the United States and China.

The agreement will cut or eliminate tariffs on almost 97 percent of European exports, saving up to 4 billion euros ($4.75 billion) annually in duties, the 27-nation bloc said.

"A mother of all deals," PM Modi said Tuesday in the capital New Delhi, where he met with European Commission President Ursula von der Leyen and European Council President Antonio Costa.

"This deal will bring many opportunities for India's 1.4 billion and many millions of people of the EU," PM Modi said, adding the agreement "represents about 25 percent of global GDP, and one-third of global trade".

(AFP)

India is expected to reduce or eliminate tariffs for 96.6% of EU exports, while Brussels will reciprocate with similar reduction covering nearly 99% of India's shipments by trade value in a phased manner, according to statements from both sides.

India's sectors poised to gain from the deal include textiles, apparel, engineering goods, leather, handicraft, footwear and marine products while the EU's gains will be in wine, automobiles, chemicals and pharmaceuticals, among others.

A quota system for automobiles, wines and whisky has been agreed on, bringing down steep duties.

(AP)

The sealing of the Free Trade Agreement between India and the European Union after an 18-year wait will bring joy to many, connoisseurs of wine and whiske, and automobile enthusiasts, among them.

New Delhi sees the European bloc as an important source of much-needed technology and investment to rapidly upscale its infrastructure and create millions of new jobs.

It also includes a security partnership, providing "new opportunities" for defence companies, PM Modi said.

(AFP)

EU officials said the deal was the most ambitious India had ever agreed, and European companies would benefit from so-called "first mover advantage".

Europe's key agricultural, automotive and service sectors stand to gain.

But sensitive agricultural sectors, such as beef, rice and sugar whose inclusion in an earlier deal struck with South American bloc Mercosur sparked farmers' anger in Europe, were left out of the agreement.

(AFP)

After nearly two decades of negotiations, India and the European Union announced Tuesday they have reached a free trade agreement to deepen economic and strategic ties. The accord – dubbed the "mother of all deals" – could impact as many as 2 billion people.

The deal is also one of the biggest bilateral engagements on commerce and comes as Washington targets both India and the EU with steep import tariffs.

"This agreement will bring major opportunities for the people of India and Europe," Prime Minister Narendra Modi said in a virtual address to an energy conference. "It represents 25% of the global GDP and one-third of global trade."

(AP)

European Council President Antonio Luis Santos da Costa shared a light moment when he unexpectedly took out his OCI (Overseas Citizen of India) card and spoke about his Goan roots.

India and the European Union on Monday stood on the cusp of sealing a long-awaited Free Trade Agreement (FTA).

The India-EU free trade agreement which European Commission President Ursula von der Leyen called "the mother of all trade deals" has been sealed, Prime Minister Narendra Modi said Tuesday afternoon.

On signing of India-EU FTA, President of the European Commission, Ursula Von Der Leyen says," PM Modi, we did it!... We delivered the mother of all deals..."

"Europe and India are making history today. We have concluded the mother of all deals," said EU commission president Ursula von der Leyen on FTA with India.

Delhi | President of the European Council, António Luís Santos da Costa, says, "We conclude today our trade negotiations. We relaunched at the latest meeting that I had the pleasure of hosting in May 2021 in my previous capacity. Our summit sends a clear message to the world. At a time when the global order is being fundamentally reshaped, the European Union and India stand together as strategic and reliable partners. Today, we are taking our partnership to the next level. As the two largest democracies in the world, we are working hand in hand to deliver concrete benefits for our citizens and to shape a resilient global order that underpins peace and stability, economic growth and sustainable development..."

European Council President Antonio Costa said the India-EU trade deal reinforces the rules-based economic order and promotes shared prosperity. He said it's one of the most ambitious agreements ever concluded, creating a market of 2 billion people in a multipower world.

Delhi | President of the European Council, António Luís Santos da Costa, says, "I'm the President of the European Council, but I'm also an overseas Indian citizen. Then, as you can imagine, for me it has a special meaning. I'm very proud of my roots in Goa, where my father's family came from and the connection between Europe and India is something personal to me"

Delhi | On signing of India-EU Free Trade Agreement, PM Modi says, "Today, India has concluded the biggest Free Trade Agreement in its history. On 27th January, India signed this FTA with 27 European nations...This will boost investment, form new innovation partnerships and strengthen supply chains at the global level...This is not just a trade agreement, it is a blueprint for shared prosperity."

Addressing a joint press conference With European Commission President Ursula von der Leyen and European Council President António Costa, PM Modi said, "It is a pleasure to welcome my two close friends, President Costa and President von der Leyen, on this unprecedented visit to India. Mr. Costa is known as the "Gandhi of Lisbon" for his simple lifestyle and his love for society. And Ursula Von Der Leyen is not only Germany's first woman Defence Minister, but has also become the first woman President of the European Union Commission, setting an example for the entire world. Yesterday was a historic moment when, for the first time, European Union leaders participated as chief guests in India's Republic Day celebrations. Today is another historic occasion."

Delhi | On signing of India-EU Free Trade Agreement, PM Modi says, "Yesterday was a historic moment when the European Union leaders took part in India's Republic Day celebrations for the first time. Today is another such moment, when two major democratic powers are adding a decisive chapter in their relationship...."

"We have sealed the biggest FTA in our history," says PM Modi on EU trade deal.

Watch LIVE | PM Modi, European Commission President Jointly Address Media As India-EU Seal Historic Trade Deal https://t.co/szoy8W6gPv

— NDTV (@ndtv) January 27, 2026

The EU and India had first launched negotiations for the free trade agreement in 2007, before the talks were suspended in 2013 due to a gap in ambition. The negotiations were relaunched in June 2022.

The EU, as a bloc, is India's largest trading partner in goods. For the financial year 2024-25, India's total trade in goods with the EU was worth about USD 136 billion, with exports around USD 76 billion and imports at USD 60 billion.

The broad focus of the summit was learnt to be on trade, defence and security, climate change, critical technologies and strengthening the rules-based global order. Besides firming up the free trade agreement, the two sides are set to unveil a defence framework pact and a strategic agenda.

India and the European Union have been strategic partners since 2004. The proposed Security and Defence Partnership (SDP) will facilitate deeper defence and security cooperation between the two sides, officials said.

The SDP will bring interoperability in the defence domain and will open up avenues for Indian firms to participate in the EU's SAFE (Security Action for Europe) programme.

India and Europe have concluded the "mother of all" trade deals, European Commission President Ursula von der Leyen said on Tuesday as Prime Minister Narendra Modi and the top EU leadership held summit talks to elevate the two-way ties to jointly navigate geopolitical turbulence and trade disruptions. Prime Minister Modi hosted von der Leyen and European Council President Antonio Costa at the summit.

"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," Von der Leyen said.

"This is only the beginning. We will grow our strategic relationship to be even stronger," she said.

The two EU leaders graced the 77th Republic Day celebrations at the Kartavya Path as chief guests on Monday.

The long-awaited free trade agreement is expected to significantly expand the overall trajectory of two-way engagement as it will open up new opportunities for cooperation in diverse areas.

India and the European Union announced Tuesday the "mother of all deals", a huge trade pact to create a market of two billion people, reached after two decades of negotiations. EU chiefs and Prime Minister Narendra Modi hope the pact will help shield against challenges from the world's two leading economies, the United States and China.

The agreement will cut or eliminate tariffs on almost 97 percent of European exports, saving up to 4 billion euros ($4.75 billion) annually in duties, the 27-nation bloc said.

"A mother of all deals," Modi said Tuesday in the capital New Delhi, where he met with European Commission President Ursula von der Leyen and European Council President Antonio Costa.

"This deal will bring many opportunities for India's 1.4 billion and many millions of people of the EU," Modi said, adding the agreement "represents about 25 percent of global GDP, and one-third of global trade".

The EU has eyed India -- the world's most populous nation -- as an important market for the future.

Union Minister Piyush Goyal on Tuesday hailed the India-European Union Free Trade Agreement (FTA), describing the deal as a "formidable partnership" for both sides in the world.

In a post on X, Goyal noted the significance of the trade deal, which aims to strengthen economic ties between India and the EU, enhance trade and investment flows, and foster collaboration across multiple sectors.

"A formidable partnership for the world!" he wrote, sharing a clip of Prime Minister Narendra Modi meeting President of the European Council Antonio Luis Santos da Costa and President of the European Commission Ursula Von Der Leyen as the leaders display the spirit of bonhomie at Hyderabad House in the national capital.

The European leaders are on a state visit to the country, which coincided with the 16th India-EU Summit in New Delhi, co-chaired by PM Modi. Following their meeting with PM Modi, the President of the European Commission took to X, noting that, "Europe and India are making history today."

In a post on X, she stated that both sides concluded the deal, which has been described as the "Mother of All Deals," noting that this was just the "beginning".

Watch LIVE Coverage | India-EU conclude negotiations on much awaited FTA https://t.co/K3Il6wY70B

— NDTV (@ndtv) January 27, 2026

India and the European Union on Monday stood on the cusp of sealing a long-awaited Free Trade Agreement (FTA).

The United States has warned that Europe is financing a "war" against itself by signing the "mother of all trade deals" with India.

The European Union and India are set to announce an agreement on a long-awaited trade deal on Tuesday, forging closer economic ties to hedge against US President Donald Trump's tariffs.

As India and the European Union (EU) move closer to finalising a landmark free-trade agreement, Prime Minister Narendra Modi hailed the move, saying the trade pact will boost the manufacturing sector and support services.

"The India-EU Free Trade Agreement complements the India-UK trade deal. It will boost the manufacturing sector and support services," PM Narendra Modi said at India Energy Week. He said the deal is being hailed as the mother of all trade deals. 

From 1980 to 2005, EU-India trade grew from €4.4 billion to €40 billion.

At the time, the EU was India's largest trading partner, accounting for 22.4 per cent of Indian exports and 20.8 per cent of imports.

While the EU accounted for 21 per cent of Indian trade, India's share of EU trade was less than 1 per cent, and while the EU was India's largest trading partner, India was the EU's 14th largest partner.

The European Union and India will explore possibilities for Indian participation in European defence initiatives, according to a draft security and defence partnership document seen by Reuters.

 India is moving closer to finalising a landmark defence and trade partnership with the European Union, as a high-level EU delegation held discussions with Defence Minister Rajnath Singh in New Delhi on Tuesday. The meeting held at Singh’s office takes place amid broader negotiations to deepen strategic, economic, and security ties between India and the EU.

The talks coincide with the four-day visit of European Commission President Ursula von der Leyen, who arrived in India on January 24. She is scheduled to hold talks with Prime Minister Narendra Modi at the 16th India–EU Summit later on Tuesday, alongside visiting European Council President Antonio Costa.

The summit is expected to mark a major milestone in bilateral relations, with officials set to announce the conclusion of negotiations on the long-awaited India–EU Free Trade Agreement (FTA), described by officials as the “mother of all trade deals”.

Commerce Secretary Rajesh Agrawal confirmed on Monday that India and the EU have successfully concluded negotiations on the FTA and that a formal announcement would be made at the summit. He described the agreement as balanced and forward-looking, stating that it would significantly boost trade and investment flows while strengthening economic integration between the two parties.

A free trade removes trade barriers and helping companies to easily export/import.

It opens up services and public procurement markets.

The pact can ensure protection of geographical indications.

It achieves ambitious commitments on trade and sustainable development.

It makes sure the agreed rules are enforceable.

A free trade agreement (FTA) is an agreement between the countries or regional blocks to reduce or eliminate trade barriers through mutual negotiations with a view to enhancing trade

It can, however, be comprehensive to include goods, services, investment, intellectual property, competition, government procurement and other areas.

On goods, the key areas covered are customs duties or tariffs, rules of origins, non-tariff measures such as technical barriers to trade (TBT), sanitary phytosanitary (SPS) measures, trade remedies, etc.

On services, the negotiations are on barriers to various modes of supply, including domestic regulations.

The United States has warned that Europe is financing a "war" against itself by signing the "mother of all trade deals" with India.

India and the European Union (EU) have concluded negotiations for a proposed free trade agreement aimed at boosting two-way trade and strengthening economic ties between two of the world's largest economies.

India and the European Union (EU) are likely to announce a historic, mega free-trade agreement (FTA) today. The two sides are expected to produce a broader vision to navigate the uncertainties triggered by US President Donald Trump's policies.

India's equity benchmarks are likely to open higher on Tuesday, supported by prospects of an India-European Union trade deal and hopes that the U.S. may lift tariffs linked to India's Russian oil purchases.

Gift Nifty futures were trading at 25,197, as of 7:53 a.m. IST, indicating that the Nifty 50 could start above Friday's close of 25,048.65. Last week, the index recorded its steepest weekly loss in four months.

Indian markets were closed on Monday.

Prime Minister Narendra Modi is set to host the 16th European Union-India Summit in the national capital on Tuesday with President of the European Commission, Ursula von der Leyen, and visiting President of the European Council, Antonio Costa, to announce the ‘month of all trade deals’. According to Commerce Secretary Rajesh Agrawal, India and the EU have concluded negotiations on the much-awaited Free Trade Agreement (FTA) and the announcement of the conclusion of talks will be made at the 16th India-EU Summit.

The Summit will offer an opportunity to build on the EU-India strategic partnership and further strengthen collaboration across key policy areas such as trade, security and defence, the clean transition and people-to-people cooperation. According to officials, the signing of the deal will take place in about six months after the legal scrubbing. The deal is expected to come into effect sometime next year.

The summit is taking place against the backdrop of the positive momentum in EU-India relations in recent years. Describing the agreement as balanced and forward-looking, Agrawal noted on Monday that it would strengthen economic integration between India and the EU and significantly boost trade and investment flows.