India Signs Historic Free Trade Agreement with EU; PM Modi Calls It a Blueprint for Shared Prosperity

India and the European Union (EU) have formally signed a Free Trade Agreement (FTA), marking the largest trade deal in India’s history. Prime Minister Narendra Modi described the agreement as a “blueprint for shared prosperity” that will strengthen investment, innovation partnerships, and global supply chains.

The deal was signed in the presence of European Council President António Costa and European Commission President Ursula von der Leyen. Referred to as the “Mother of All Deals,” this FTA is expected to expand cooperation across multiple sectors and deepen ties between India and the EU. India and the EU have been strategic partners since 2004, and this agreement represents a landmark moment in their relationship.

Speaking at a joint press conference, PM Modi said,
“Today, India has completed its largest-ever free trade agreement in history. On 27 January, we have signed this FTA with 27 European countries. This will boost investment, create new innovation partnerships, and strengthen supply chains globally. This is not just a trade agreement, it is a blueprint for shared prosperity.”

He added that the agreement will provide a clear agenda for India-EU collaboration and support the development of the India-Middle East Economic Corridor, ushering in a “new era” in bilateral relations.

European Council President António Costa said the FTA will strengthen ties between the people of India and Europe, calling it a historic moment. Costa, who has Goan roots, described himself as an overseas Indian and emphasized the deal’s importance for trade, security, and bilateral cooperation.

European Commission President Ursula von der Leyen added,
“Prime Minister Modi, we have delivered. We have delivered the Mother of All Deals.”

With Europe being India’s largest trading partner, this deal comes at a time when negotiations with the United States are stalled, potentially allowing India to offset export challenges through strengthened trade with the EU.