India-EU Seal Historic Free Trade Agreement, PM Modi Hails It as ‘Mother of All Deals’
India and European Union announce landmark FTA at 16th India-EU Summit in New Delhi: India and the European Union on January 27 announced a historic Free Trade Agreement (FTA) at the 16th India-EU Summit held in New Delhi, marking a major milestone in bilateral relations. Prime Minister Narendra Modi described the agreement as the “Mother of All Deals,” highlighting its scale, ambition, and global significance.
announcements and agreements:
Convergence of 25% global GDP: PM Modi said during the summit that this agreement brings together the two largest economies of the world, which together cover 25% of the global gross domestic product (GDP) and one-third of global trade.
Market of 2 billion people: European Commission President Ursula von der Leyen said that this agreement will create a huge integrated market of 2 billion people.
Defense and Security Partnership: In addition to trade, the two sides also signed a Strategic Defense and Security Partnership (SDP). This will open the door for Indian companies to participate in the EU’s 150 billion euro ‘SAFE’ defense program.
Addressing the summit alongside top European Union leaders, PM Modi said the agreement brings together two of the world’s largest economies, collectively accounting for nearly 25 percent of global GDP and one-third of global trade. The deal is expected to significantly deepen economic cooperation and unlock new opportunities across sectors.
European Commission President Ursula von der Leyen said the agreement would create a vast integrated market of around 2 billion people, making it one of the most impactful trade arrangements in the world. She emphasized that the FTA would strengthen supply chains, promote innovation, and enhance economic resilience on both sides.
Speaking at the inaugural ceremony of India Energy Week 2026, PM Modi reiterated that the India-EU trade agreement would give a major push to India’s manufacturing sector by creating new jobs, encouraging investment, and boosting exports. He noted that the agreement complements India’s existing trade pacts with the United Kingdom and the European Free Trade Association (EFTA).
Agreement brings together economies representing 25% of global GDP
Beyond trade, India and the EU also signed a Strategic Defence and Security Partnership (SDP), signaling a deeper alignment in geopolitical and security matters. Under this partnership, Indian companies will be able to participate in the EU’s €150-billion SAFE defence programme, opening new avenues for collaboration in defence technology and production.
Earlier, Defence Minister Rajnath Singh described the Technology and Defence Partnership as a crucial step toward strengthening ties in an increasingly complex global environment. Addressing an EU delegation led by Kaja Kallas, the EU’s High Representative for Foreign Affairs and Security Policy, Singh said the partnership reflects growing trust and strategic convergence.
He noted that the visit of EU leaders coincided with India’s 75th Republic Day, calling it a moment that reaffirms India’s constitutional values and commitment to global peace and security. Singh emphasized that shared values of democracy, pluralism, federalism, and the rule of law form the foundation of the expanding India-EU partnership.
Indian and EU leaders jointly stressed that the agreement is not just about trade, but about translating shared values into practical cooperation for global security, sustainable development, and inclusive prosperity, positioning the partnership as a key pillar in the evolving global order.
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