On Tuesday, Prime Minister Narendra Modi announced the long-awaited signing of a free trade agreement (FTA) between India and the European Union, calling it a pivotal moment for both major global economies. The agreement is likely to open up enormous economic potential for both enterprises and consumers, with crucial benefits for industries such as textiles, gems and jewellery, and leather goods.  

PM Modi addressed the event, referring to the accord as the “mother of all trade agreements,” emphasizing its size and potential impact. He stated that the India-EU FTA would open up new prospects for India’s 1.4 billion residents, as well as millions of people throughout Europe. He noted that the pact would complement the recently negotiated India-UK trade agreement by bolstering India’s manufacturing base and promoting service growth.  

The Prime Minister said that the India-EU economic alliance accounts for around 25% of world GDP and nearly one-third of global commerce. According to him, the agreement strengthens India’s position inside global value chains and expands its role as a vital trading partner for Europe.  

The accord, reached after nearly two decades of negotiations and delays, represents a huge step forward in India’s trade diplomacy. The FTA will allow India to open up areas of its enormous and traditionally protected market to freer commerce with the 27-member European Union, India’s largest trading partner.  

The India-EU Free Trade Agreement is projected to expand economic integration, increase investment flows, and strengthen long-term trade links between the two areas.