India-EU Summit: Show of Strength as Modi, EU Leaders Seal Landmark Free Trade Deal

After nearly 20 years of talks, India and EU have finalized a major Free Trade Agreement. The pact, announced in New Delhi, is designed to significantly reduce tariffs on a wide range of products and services, enhancing market access for both sides.

At a high-profile summit in New Delhi on January 27, 2026, India and the European Union (EU) announced the conclusion of long-pending negotiations on a groundbreaking Free Trade Agreement (FTA) — a move seen as a major show of strategic strength on the global stage. Leaders emphasised the pact’s significance not just for bilateral commerce, but as a signal of economic resilience and geopolitical stability.

Indian Prime Minister Narendra Modi, alongside European Commission President Ursula von der Leyen and European Council President António Costa, hailed the agreement as the “mother of all deals” after nearly two decades of talks. Modi said the pact represents about 25% of global GDP and one-third of global trade, underlining India’s growing clout in international trade diplomacy.

Speaking via video conferencing at the inauguration of India Energy Week 2026 in Goa, PM Modi said, “Just yesterday, a major agreement was finalised between India and the European Union. People around the world are discussing it as the ‘Mother of All Deals’."

He added, “This agreement brings tremendous opportunities for India’s 1.4 billion people and the millions in European countries."

Also, European Commission President Ursula von der Leyen took to X (formerly Twitter) and said, “Europe and India are making history today. We have concluded the mother of all deals.”

The summit coincided with the 77th Republic Day celebrations, where the presence of EU leaders as chief guests — participating in ceremonial events and then shifting to substantive negotiations — was seen as symbolic of deepening ties and shared strategic interests.

The FTA is designed to slash tariffs on a wide range of products and services, opening up India’s vast market to European exporters while enhancing access for Indian sectors such as textiles, chemicals and services in Europe. The deal also sets the stage for cooperation in defence, climate action, clean technology and digital trade, broadening the scope beyond traditional trade frameworks.

European leaders underscored that the agreement sends a strong political message against protectionism at a time of rising tariff barriers worldwide, particularly from the United States. EU officials noted that India and Europe together can act as providers of stability, protectability and reliability on the global economic stage.

While the pact still requires legal vetting and ratification — a process expected to take several months — the political consensus achieved at the summit marks a major diplomatic victory. Observers say the deal enhances India’s strategic autonomy and strengthens its ability to diversify global partnerships, bolstering its position amid shifting global power dynamics.

In sum, the India-EU FTA reflects not just economic ambition, but a powerful demonstration of India’s rising global influence and collaborative leadership with Europe.