PM Modi, EU Leaders Ink Landmark India-EU Free Trade Agreement at 16th Summit
Landmark agreements to create a two billion strong free trade zone, boost manufacturing, services, and strengthen strategic cooperation
New Delhi, Jan 27: Prime Minister Narendra Modi co-hosted the 16th India-EU Summit on Tuesday at Hyderabad House with European Commission President Ursula von der Leyen and European Council President António Luís Santos da Costa. The summit marked the signing of the long-awaited India-EU Free Trade Agreement (FTA) and a Security and Defence Partnership, cementing stronger economic and strategic ties between India and the European Union.
During a joint press briefing, the leaders witnessed the signing of the political declaration concluding FTA negotiations, along with agreements establishing a green hydrogen task force, an MoU between the Reserve Bank of India and the European Securities and Market Authority, an Administrative Arrangement on Advanced Electronic Seals and Signatures, and a cooperation pact on disaster risk management.
EU Commission President Ursula von der Leyen called the FTA “the mother of all deals,” noting that it establishes a free trade zone covering two billion people, with benefits for both regions. She said, “This is only the beginning. We will grow our strategic relationship to be even stronger.”
PM Modi described the deal as India’s largest-ever FTA, emphasizing that it will boost investments, form innovation partnerships, strengthen global supply chains, and expand both manufacturing and services sectors. He said, “The Free Trade Agreement will boost the confidence of every investor and businessman to invest in India, creating opportunities for people in India and Europe.”
European Council President da Costa highlighted the summit as a “historic moment” in India-EU relations, underscoring the potential for deeper collaboration on trade, security, and people to people ties.
In a major development, India and the EU also signed a Security and Defence Partnership. EU Vice President Kaja Kallas described the pact as a “milestone,” signaling the potential to enhance bilateral defence cooperation and work together in multilateral forums.
