PM Modi hails biggest-ever trade deal with EU: 'Blueprint for shared prosperity'

The three leaders on Tuesday jointly announced the conclusion of the India-EU FTA

Prime Minister Narendra Modi on Tuesday hailed the conclusion of the India-European Union Free Trade Agreement (FTA), calling it the biggest deal in the history of the country.

“Today, India has concluded the biggest Free Trade Agreement in its history. On January 27th, 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,” the Prime Minister said.

His remarks came during a joint press conference after holding summit talks with the 27-nation bloc's top leaders Ursula von der Leyen and Antonio Costa.

The three leaders on Tuesday jointly announced the conclusion of the India-EU FTA at the 16th India-EU Summit, held during the visit of the European leaders to India. The documents on the FTA conclusion were exchanged between EU trade commissioner Maros Sefcovic and union commerce minister Piyush Goyal.

“Today there is major turmoil in the global order. In such a situation, the partnership between India and the European Union will strengthen stability in the international system. In this context, today we held detailed discussions on several global issues, including Ukraine, West Asia, and the Indo-Pacific,” said PM Modi in the briefing.

“Respect for multilateralism and international norms is our shared priority. We also agree that to address today's challenges, global institutions need reform,” he added.

The Prime Minister also noted that India-EU relations have grown exponentially in recent years, rooted in shared democratic values, economic synergy, and strong people-to-people ties, acknowledging that the India-EU trade stands at EUR 180 billion.

Highlighting expanding areas of cooperation, PM Modi said India and the EU have forged partnerships spanning strategic technology, clean energy, digital governance, and development cooperation, leading to decisions that will benefit all sections of society.

The EU and India had first launched negotiations for the FTA 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.