Prime Minister Narendra Modi on Tuesday described the proposed India–European Union Free Trade Agreement, scheduled for January 27, as historic, calling it the “mother of all deals.” He said the agreement would strengthen partnership between two major economies and give new direction to global trade, investment, and supply chains.
Speaking at the inauguration of India Energy Week 2026, the Prime Minister said the India–EU trade agreement would boost India’s manufacturing sector and create new opportunities for many people. He stated that the deal reinforces the shared commitment of both sides to democracy and the rule of law.
Addressing the summit, Prime Minister Modi said the agreement brings closer two of the world’s largest economies. He said India and the European Union together account for 25 percent of global GDP and one-third of global trade, indicating that the agreement would have a direct impact on global trade and economic stability.
European Commission President Ursula von der Leyen said the agreement would create a vast integrated market of 2 billion people. She said the deal would open pathways for new trade opportunities and increased investment for both regions.
Prime Minister Modi said the free trade agreement would provide new momentum to Indian industry and the manufacturing sector. He said sectors including textiles, steel, pharmaceuticals, petroleum products, and machinery would benefit. He added that European companies would also gain support in increasing exports to India in areas such as automobiles, machinery, and wine.
The Prime Minister said the agreement would provide India with easier access to large European markets and strengthen India’s participation in global supply chains. He described the deal as an example of partnership between the two economies.
Alongside the trade agreement, India and the European Union also signed a Strategic Defence Partnership. Defence Minister Rajnath Singh said the agreement is an important step in bringing India and the EU closer in a complex global security environment.
At an event held at South Block, the Defence Minister welcomed the EU High Representative for Foreign Affairs and Security Policy, Kaja Kallas. He said the visit coincided with India’s 75th Republic Day and reflected India’s constitutional journey and commitment to global peace.
Rajnath Singh said shared values such as democracy, pluralism, federalism, and the rule of law form the foundation of the growing partnership between India and the European Union. He said the objective of both sides is to translate these values into practical cooperation for global security, sustainable development, and inclusive prosperity.
Prime Minister Modi said at the summit that the agreement represents the execution of the pending India–EU trade agreement and noted that it is already being described globally as the “mother of all deals.” He said the agreement would provide India with new access to European markets and expand global opportunities for Indian companies.
Explaining the significance of the deal, the Prime Minister said it would also complement agreements with the United Kingdom and the European Free Trade Association, strengthening India’s global trade network and investment opportunities.
