Prime Minister Narendra Modi has confirmed that India and the European Union have signed a landmark trade agreement, describing it as the “mother of all deals” and a model partnership between two major global economies. 

Addressing the Indian Energy Week virtually, Modi congratulated all on the EU-India trade deal and said, "I am informing you about a big development … a significant agreement was signed between India and Europe yesterday (Monday)."

He said, "Yesterday a big agreement was signed between the European Union and India. People are calling this the mother of all deals. This agreement will bring major opportunities for the public in India and Europe. This is a perfect example of a partnership between two major economies of the world...This agreement represents 25% of the global GDP and 1/3rd of global trade."

Delegation-level talks 

The Prime Minister is set to hold restricted and delegation-level talks with European Commission President Ursula von der Leyen and European Council President Antonio Costa on January 27 (Tuesday). Discussions are expected to focus on trade, defence and security cooperation, climate action, critical technologies, and strengthening the rules-based global order. 

Modi said, "Manufacturing will get a huge boost from this trade deal with the EU, and the services sector will also expand. The Free Trade Agreement will boost the confidence of every investor and businessman to invest in India..." 

Commerce Secretary Rajesh Agrawal confirmed that India and the EU have successfully concluded negotiations and will formally announce the Free Trade Agreement (FTA) on Tuesday. Under an FTA, both sides reduce or eliminate import duties on over 90% of traded goods and liberalise norms to boost trade in services such as telecommunications, transport, accounting, and auditing. 

The pact assumes added significance amid pressure on global trade flows following the imposition of high tariffs by the United States. India is currently facing tariffs of up to 50% from the U.S., and the India–EU FTA is expected to help Indian exporters diversify markets, and reduce dependence on China. 

Beyond trade in goods and services, India and the EU are also negotiating agreements on investment protection and Geographical Indications. The India–EU FTA spans 24 chapters covering trade in goods, services, and investment. 

India's largest trading partner in goods

The EU is India’s largest trading partner in goods. Bilateral trade in goods stood at $136.53 billion in 2024–25, with exports worth $75.85 billion and imports at $60.68 billion, giving India a trade surplus of $15.17 billion. Services trade between the two sides amounted to $83.10 billion in 2024. 

Since 2014, the NDA government has concluded seven trade agreements, including pacts with Australia, the UK, Oman, New Zealand, the UAE, the EFTA bloc, and Mauritius.