'India's Biggest FTA, Historic Occasion': PM Modi Hails Trade Deal With EU, Momentum In Ties

Declaring that “two of the world’s biggest democracies are adding a decisive chapter in their relationship,” Prime Minister Narendra Modi on Tuesday hailed the conclusion of the India-European Union Free Trade Agreement as India’s largest-ever trade pact.

The Prime Minister also called the signing of the pact a transformational moment for economic cooperation between New Delhi and the 27-nation bloc.

Speaking after the signing ceremony, witnessed by European Commission President Ursula von der Leyen and European Council President António Costa, the Prime Minister underscored both the scale and symbolism of the agreement.

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

Referring to the rapid momentum in ties, PM Modi noted that EU leaders had participated in India’s Republic Day celebrations for the first time just a day earlier.

“Yesterday was a historic moment when, for the first time, European Union leaders participated as Chief Guests in India’s Republic Day celebrations. Today is another such moment, when two major democratic powers are adding a decisive chapter in their relationship,” he added.

Welcoming his counterparts, the Prime Minister remarked, “It is a pleasure to welcome my two close friends, President Costa and President von der Leyen, on this unprecedented visit to India.”

He described Costa as the “Gandhi of Lisbon” for his simple lifestyle and social commitment, and praised von der Leyen for becoming the first woman President of the European Commission, calling her an inspiration for the world.

PM Modi highlighted the growing depth of India-EU engagement, saying bilateral trade had reached nearly $180 billion, with cooperation spanning strategic technologies, clean energy and digital governance.

Stressing the domestic impact of the FTA, he said, “Farmers and MSMEs will benefit, there will be new opportunities in manufacturing, a boost to investment and new innovation partnerships. Supply chains will be strengthened at the global level.”

The Prime Minister also linked the trade deal with broader strategic understandings concluded alongside it, including agreements on defence, security and a comprehensive framework for mobility.

“Defence is a foundation that is giving a new shape to our relationship. Counter-terrorism, maritime and cyber security cooperation will be strengthened. Our defence companies will look for more opportunities for co-production and co-development,” he said, adding that scientific and technological collaboration would deepen through new mobility arrangements.

Citing discussions with EU leaders on global issues, PM Modi said Ukraine, West Asia and the Indo-Pacific featured prominently in talks, and reiterated that “multilateralism and respect for international norms are our shared priorities.”

He also referred to the India-Middle East-Europe Economic Corridor, signalling its relevance to future connectivity and trade.

The announcement of the conclusion of negotiations was made at the 16th India-EU Summit in the national capital, hosted by Prime Minister Modi, with von der Leyen and Costa in attendance.

Commerce Secretary Rajesh Agrawal was quoted as saying that the agreement is balanced and forward-looking, and that formal signing would take place after legal scrubbing in about six months, with the pact expected to come into force sometime next year.

The summit sought to build on the EU-India strategic partnership across trade, security and defence, clean transition and people-to-people cooperation.