India and the European Union (EU) have signed a free trade agreement, Indian Prime Minister Narendra Modi said on Tuesday, January 27.
Describing it as the “mother of all deals” that accounts for 25 percent of global GDP, Modi said the pact will create significant opportunities for people and businesses in both regions and that it is a shining example of cooperation between the world's two largest economies.
FTA trade covers goods and services, investment protection, intellectual property, sustainability, labor standards and regulatory cooperation. Although negotiations have concluded, formal ratification by EU member states and the European Parliament is still awaited.
India-EU trade in goods exceeded €120 billion in 2024, highlighting the economic weight of the agreement. India is the EU's ninth-largest trading partner, accounting for 2.4 percent of total merchandise trade in the bloc. Modi and European Commission President Ursula von der Leyen are expected to make a joint statement at the India-EU summit in New Delhi later on January 27, revealing details of a deal that has been nearly two decades in the making. This is India's fourth major trade deal since The US, India's largest export market and major trading partner, imposed steep tariffs in August. It also concluded trade pacts with the UK, Oman and New Zealand.
