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India, EU Exchange Historic Free Trade Agreement
Jan 27, 2026India and the European Union on Tuesday exchanged a historic Free Trade Agreement (FTA) following the India–EU Summit held in New Delhi. The agreement was exchanged in the presence of Prime Minister Narendra Modi, President of the European Council Antonio Costa, and President of the European Commission Ursula von der Leyen.
Along with the FTA, India and the EU also exchanged several other agreements covering key areas such as trade, security, defence partnership, mobility, disaster risk management, and green hydrogen cooperation.
In his joint statement, Prime Minister Modi described the FTA as historic, noting that it would significantly benefit farmers and micro, small and medium enterprises (MSMEs). He said India has signed its largest free trade deal with the European Union, which is expected to boost investment, create new innovation partnerships, and strengthen global supply chains. Emphasising the broader impact, the Prime Minister said the agreement is not merely a trade deal but a new blueprint for shared prosperity.
Prime Minister Modi also highlighted that India–EU relations have reached new heights, adding that the Security and Defence Partnership will deepen cooperation in counter-terrorism, maritime security, and cyber security. He remarked that at a time of churn in the global order, stronger India–EU ties would contribute to global stability. Stressing the need for reforms in global institutions, he termed the Summit a turning point in bilateral relations.
European Council President Antonio Costa said the Summit sends a clear message that India and the EU stand together as strategic and reliable partners in a rapidly changing world. He added that both sides must demonstrate leadership on key global issues.
European Commission President Ursula von der Leyen termed the India–EU FTA “the mother of all deals,” saying it would create jobs for millions in both India and Europe. She thanked Prime Minister Modi for the warm hospitality and said it was an honour to attend the Republic Day parade as Chief Guest. Praising India’s rise, she said that when India succeeds, the world becomes more stable, prosperous, and secure.
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