PM Narendra Modi on Tuesday (January 27) described the India–European Union Free Trade Agreement (FTA) as the“mother of all deals,” asserting that it would unlock vast opportunities for people and businesses on both sides while significantly deepening ties between two of the world’s largest economic blocs.
Speaking ahead of the 16th India–EU Summit in New Delhi, Modi said the agreement marked a landmark moment in India’s external economic engagement. “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,” the PM said.
He further underlined the scale of the pact, noting that India and the EU together account for nearly 25% of global GDP and almost one-third of global trade. According to Modi, the agreement demonstrates India’s growing role in shaping global economic architecture and reflects mutual confidence between New Delhi and Brussels.
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Historic Summit Marks Conclusion of Long-Pending Talks
PM’s remarks came just hours before he was scheduled to hold restricted and delegation-level talks with European Commission President Ursula von der Leyen and European Council President Antonio Costa. The summit is being widely viewed as historic, as both sides are set to formally announce the conclusion of negotiations on the long-pending FTA, discussions on which had stretched over several years.
Commerce Secretary Rajesh Agrawal confirmed on Monday that India and the EU have successfully wrapped up negotiations. He said the formal announcement of the trade agreement would be made on Tuesday, January 27. Agrawal added that the deal is expected to come into force next year after a detailed legal scrubbing of the text, a process likely to take five to six months, followed by formal signing by both sides.
Meanwhile, von der Leyen, who attended India’s Republic Day parade as one of the chief guests, highlighted the strategic importance of India’s economic rise. In a post on X, she said, “A successful India makes the world more stable, prosperous and secure. And we all benefit.”
The agreement has also attracted international attention. US Treasury Secretary Scott Bessent reportedly expressed concern over the development amid ongoing India–US trade talks, while criticising Europe’s continued purchase of refined Russian oil products from India.
Overall, the India–EU FTA is being seen as a transformative deal that could reshape trade flows, strengthen supply chains, and elevate the strategic partnership between New Delhi and Brussels in an increasingly uncertain global economic environment.
‘Europe financing war against themselves– US Treasury Secretary Scott Bessent
US Treasury Secretary Scott Bessent criticised the India–EU free trade agreement expected to be announced on Tuesday, alleging that Europe was indirectly financing the Russia–Ukraine war through energy trade routed via India. The pact, described by both Indian and European leaders as the “mother of all deals,” has drawn sharp remarks from Washington.
Bessent, a senior aide to President Donald Trump, argued that European governments were weakening their own security position by purchasing refined petroleum products from India that are derived from Russian crude, even as the United States continues to impose punitive tariffs on New Delhi over the same issue.