‘Mother of all deals’ signed: India-EU Free Trade Agreement will stabilise global order amid turmoil, says PM Modi

January 28, 2026

NEW DELHI – Prime Minister Narendra Modi on Tuesday co-hosted the 16th India-EU Summit with the President of the European Commission, Ursula Von Der Leyen and the President of the European Council, António Luís Santos da Costa, at Hyderabad House in Delhi.

During a joint press briefing, PM Modi and the EU leaders witnessed the signing and exchange of the political declaration of the conclusion of negotiations of the India-EU Free Trade Agreement.

Both sides also witnessed the exchange of documents on the constitution of a green hydrogen task force, MoU between the Reserve Bank of India and the European Securities and Market Authority and the Administrative Arrangement on Advanced Electronic Seals and Signatures. India and the EU have also signed an agreement on cooperation and disaster risk management.

India-EU trade deal will stablise global order amid turmoil: PM Modi

In a joint statement, PM Modi said India has concluded the biggest Free Trade Agreement in its history. “On 27th January, India signed this FTA with 27 European nations…This will boost investment, form new innovation partnerships and strengthen supply chains at the global level…This is not just a trade agreement, it is a blueprint for shared prosperity,” he said.

The PM also announced the launch of an ambitious and holistic strategic agenda for the next 5 years amid “complex global environment.”

This agenda, he said, will provide clear direction, advance our shared prosperity, accelerate innovation, strengthen defence cooperation and deepen people-to-people ties.

“The coming together of India and the EU is a partnership for global good. We will advance trilateral projects from the Indo-Pacific to the Caribbean. Together, we will establish the IMEC corridor as an important link for global trade and sustainable development,” he stated.

Modi said that the global order is in turmoil and the India-EU cooperation will strengthen stability in the international system.

PM Modi also discussed several global issues, including the Ukraine war, with the EU leaders. “We share the opinion that global institutional reforms are very necessary today. This is the moment when we are starting a new chapter in our relationship between India and the EU,” he added.

‘Historic moment’: European Council President on India-EU trade deal

President of the European Council, António Luís Santos da Costa thanked Prime Minister Modi for welcoming him and EU Commission President Ursula von der Leyen on this special occasion.

He said, “We were privileged yesterday to be your chief guests for the Republic Day celebrations. Such an impressive display of India’s capabilities and diversity.”

Calling the signing of the trade agreement “a historic moment”, da Costa said, “We are opening a new chapter in our relations on trade, on security, and on people-to-people ties”.

He noted that the historic trade agreement has come at a time when the global order is being fundamentally reshaped and the European Union and India stand together as strategic and reliable partners.

“Today, we are taking our partnership to the next level. As the two largest democracies in the world, we are working hand in hand to deliver concrete benefits for our citizens and to shape a resilient global order that underpins peace and stability, economic growth and sustainable development…,” he said.

Emphasising the centuries old trade ties between India and Europe, da Costa said that trade is a crucial geopolitical stabiliser and trade agreements reinforce a rules-based economic order.

“That’s why today’s free trade agreement is of historic importance. One of the most ambitious agreements ever concluded, creating a market of 2 billion people,” he added.

India-EU deal has created free trade zone of two billion people: EU Commission President

“Europe and India are making history today,” von der Leyen said. Announcing the conclusion of the negotiations for “the mother of all deals”, the EU Commission President said, “We have created a free trade zone of two billion people, with both sides set to benefit. This is only the beginning. We will grow our strategic relationship to be even stronger.”

Earlier on Monday, India and the European Union completed the negotiations for the trade deal that will reportedly see New Delhi exempting over 96 per cent EU goods from tariffs.

India-EU trade deal to boost manufacturing, expand services sector: Modi

Earlier today, PM Modi confirmed the signing of the deal. “Yesterday a big agreement was signed between the European Union and India. People are calling this the mother of all deals.”

Noting that the India-EU trade agreement represents 25 per cent of the global GDP and one-third of global trade, Modi said the pact will bring major opportunities for the public in India and Europe.

According to the PM, the trade deal between India and the EU will boost manufacturing, while also expanding the services sector.

“The Free Trade Agreement will boost the confidence of every investor and businessman to invest in India…,” the PM said.

India-EU Security and Defence Partnership sealed

Meanwhile, India and the European Union have also inked a security and defence partnership. An agreement on India-EU Security and Defence Partnership was also signed during the Summit.

European Union Vice President Kaja Kallas said that the “signing of the Security and Defence Partnership is a milestone, and we can build on that.”

“There is so much more we can work together on in the multilateral foram, as well as bilaterally, to further develop defence cooperation,” Kallas added.