New Delhi: A historic agreement was sealed today between India and the European Union. According to reports, this massive deal was finalized after lengthy negotiations. It is also being called the ‘Mother of All Deals’. India and the European Union together account for approximately one-fifth of world trade and about 25 percent of the world’s population, which reflects the growing economic and strategic importance of this partnership.
Press Conference by PM Modi and the two European leaders
The leaders of India and the European Union are currently officially announcing the agreement through a press conference. PM Modi mentioned that European Union leader António Costa is known as the Gandhi of Lisbon. Earlier, PM Modi said that they have created a free trade zone for two billion people, which will benefit both sides. He said that they will further strengthen their strategy. PM Modi further added that this is a blueprint for shared prosperity. Stability will be further strengthened. He further said that this is not just a trade agreement. PM Modi and the two European Union leaders held extensive discussions at Hyderabad House. PM Modi said that this deal will benefit everyone and will provide new opportunities for defense companies. Agriculture and clean energy will be strengthened. Several global issues were also discussed. Earlier, Prime Minister Narendra Modi said on X, “A major agreement was signed yesterday between the European Union and India. People are calling it the ‘Mother of All Deals’. This agreement will bring great opportunities for people in India and Europe. This is a perfect example of a partnership between two of the world’s largest economies. This agreement represents 25 percent of global GDP and 1/3 of global trade.” António Costa expresses happiness
Meanwhile, European Union President António Costa expressed happiness over the agreement between the two. He said that the agreement is a historic moment. It will create new opportunities. Antonio Luis Santos da Costa further stated, “I am the President of the European Council, but I am also an Overseas Indian Citizen. So, as you can imagine, this has a special meaning for me. I am very proud of my roots in Goa, where my father’s family came from, and the connection between Europe and India is personal for me.” European Council President Antonio Costa said, “Thank you, dear Prime Minister Modi, for welcoming us on this special occasion. On Monday, we had the opportunity to be your Chief Guests for the Republic Day celebrations. It was a magnificent display of India’s capabilities and diversity. Today is a historic moment. We are opening a new chapter in trade, security, and people-to-people relations.” The Prime Minister further added, “This agreement strengthens our shared commitment to democracy and the rule of law. This Free Trade Agreement with the European Union will also complement the agreements with the UK and EFTA. I congratulate the people of the country for this.”
PM Modi said, “This trade deal with the European Union will give a big boost to manufacturing, and the services sector will also grow. The Free Trade Agreement will increase the confidence of every investor and businessman to invest in India.”
The European Union and India are close partners working to promote economic prosperity, a rules-based international order, and sustainable development. Trade and investment remain key pillars of this relationship. At the European Union-India Summit on Tuesday, leaders from both sides are expected to adopt a joint comprehensive strategic agenda and discuss trade in the context of the ongoing free trade agreement negotiations. These negotiations were first launched in 2007 and relaunched in 2022, concluding on Monday.
Speaking about the upcoming deal, European Commission President Ursula von der Leyen said, “India and Europe have made a clear choice: a choice for strategic partnership, dialogue, and openness.” “Leveraging our complementary strengths and building mutual resilience, we are showing a fragmented world that another path is possible.”
European Council President Antonio Costa echoed this sentiment, stating, “India is a crucial partner for the European Union. Together, we share the capacity and responsibility to uphold the rules-based international order. The European Union is India’s second-largest trading partner in goods, after China and ahead of the United States, accounting for 11.5 percent of India’s total goods trade.
According to official data, EU-India trade in goods exceeded 120 billion euros in 2024. This included 71.4 billion euros in imports from India to the EU and 48.8 billion euros in exports from the EU to India.
Trade in goods between the two has more than doubled in the last ten years. During this period, imports from India to the EU increased by 140 percent, while exports from the EU to India increased by 58 percent, demonstrating consistent growth in commercial relations.
The main goods exported from the EU to India include machinery and appliances, transport equipment, and chemicals. Conversely, the EU primarily imports machinery and appliances, chemicals, and fuels from India.
