- India and EU have sealed the largest free trade agreement ever for India, PM Modi said
- It marks a historic breakthrough after nearly two decades of stalled negotiations
- The agreement focuses on trade, democracy, rule of law, and green energy cooperation
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 European Council President Antonio Costa and the PM signed a declaration to that effect.
In a post-signing statement on X the PM said two of the world's biggest democratic trading blocs – with trade valued at US$ 213 billion – had "sealed the biggest FTA in our history". The PM said, "We have taken a lot of decisions that will help people… the India-EU trade deal is a blueprint for mutual growth."
He also noted an estimated eight lakh Indians living in the EU will benefit greatly.
"Today, India has concluded the largest Free Trade Agreement in its history. Today is January 27 and it is a happy coincidence that, on this day, India is signing this FTA with 27 countries of the European Union. This is not just a trade agreement... it is a new blueprint for shared prosperity," the PM said.
"The cooperation between India and the EU is a partnership for the global good," he added.
What EU leaders said
Costa said India and the EU "stand together as strategic and reliable partners… and we are taking our partnership to the next level, to shape a resilient global order that enables peace and stability".
"India is the fastest growing economy and today's FTA is of historic importance (for Europe)," he said, noting it creates an overall market of just under two billion people. Costa, however, also outlined the EU's future hopes from this partnership, including a focus on green energy.
"Dear PM, we can count on you for creating conditions for peace, dialogue and together we must show leadership on global issues," he said, calling for greater cooperation in areas such as combating climate change and the transition from fossil fuels to green and renewable energy.
Costa, who also holds an Overseas Citizen of India card, declared himself "proud" of his Indian roots and said the India-EU trade deal reflects the "shared vision of India and Europe".
And von der Leyen, who joined Costa as the chief guest for Republic Day celebrations in Delhi, spoke again about India's growth being needed for a more secure world. "India has risen and Europe is truly glad about it," she said, "When India succeeds, world is more secure and we all benefit."
"We did it... we delivered the ‘mother of all deals'. It is a tale of two giants," she said.
What is India-EU trade deal?
Earlier the PM called the FTA, which he noted is around 25 per cent of global GDP, a 'remarkable example of cooperation between the world's two largest economies' and emphasised the positive outcome for several domestic sectors, including textiles, gems and jewellery, and leather goods.
NDTV Explains | India-EU's Historic Trade Deal Amid Global Turmoil. Why It Matters
The accord reached this morning marked a major breakthrough in talks that had dragged on for nearly two decades; negotiations were first launched in 2007 and dropped in 2016 over a till-then unresolved roadblock – primarily over access to India's agricultural and dairy goods market – halted progress.
READ | ''EU Funding War Against Itself With India-EU Trade Deal': Team Trump
Talks were resumed in 2022 – amid concerns over global supply chains being affected by the post-COVID era and Russia's war on Ukraine – and accelerated last year as Donald Trump's tariffs hit.
From defence deals to cheaper goods
The deal is expected to bring a qualitative change in deepening the overall bilateral ties in a range of sectors. For a start, it is expected to lower tariffs on most consumer and industrial goods traded between India and EU members, although it is likley to exclude some agricultural products.
Among the key provisions and areas covered are the slashing of tariffs for cars from the EU from 110 per cent to 40 per cent and then just 10 per cent, and easing of norms for steel and textile exports.
The EU will gain in financial and legal services and procurement.
The two sides also unveiled a defence framework pact and a strategic agenda.
Overall, bilateral trade is expected to jump to over US$ 40 billion over a five-year period.
The new partnership comes at a time when Europe is seeking to reduce its dependence on the US and China, and deepen its diplomatic and economic ties to other regions.
With input from agencies
NDTV is now available on WhatsApp channels. Click on the link to get all the latest updates from NDTV on your chat.
