Prime Minister Narendra Modi has welcomed the Free Trade Agreement (FTA) concluded between India and the European Union, calling it a historic step that will create countless opportunities for India’s
youth.
Speaking a day after the agreement was concluded, PM Modi said the India-EU FTA is being described globally as the “mother of all deals” and a game-changer for the world. He said the agreement reflects growing global confidence in India’s young population because of their skills and values.
He noted that India has already signed similar trade agreements with Oman, New Zealand, the UK, the UAE, Australia and Mauritius, and all of them are opening new avenues for employment and growth.
Benefits for youth and startups
PM Modi said the FTA will benefit Indian startups by making access to funding and innovation ecosystems easier. He added that the deal will strongly support the creative economy, including film, gaming, fashion, digital content, music and design.
He said new opportunities will also emerge for young Indians in research, education, IT and other professional services.
Key trade provisions
Under the agreement, tariffs on more than 99 per cent of India’s exports to the EU will be either zero or very low. India will reduce or eliminate tariffs on 96.6 per cent of EU exports, while the EU will do the same for nearly 99 per cent of Indian shipments in phases.
“This agreement will also greatly benefit our creative economy, including film, gaming, fashion, digital content, music, and design, and will create countless new opportunities for India’s youth, from research and education to IT and other professional services…Under this agreement, tariffs on more than 99 per cent of India’s exports will be either zero or very low,” PM Modi added.
The deal is expected to generate annual tariff savings of up to €4 billion for exporters. Sensitive EU agricultural products such as beef, rice and sugar are excluded from the agreement.
India and the EU concluded negotiations on January 27, 2026, during the 16th India-EU Summit in New Delhi. The agreement creates a free trade zone covering two billion people and nearly a quarter of global GDP.
Formal signing is expected in five to six months after legal review, with ratification and implementation targeted for early 2027. Additional agreements on security, defence and talent mobility were also signed alongside the FTA.
