The landmark partnership between two major economies will create new opportunities for businesses, consumers, and the skilled workforce, said Prime Minister Narendra Modi while announcing the signing of a free trade agreement (FTA) between India and the European Union.
Addressing a joint press conference at Hyderabad House, New Delhi, with European Commission President Ursula von der Leyen on January 27, PM Modi underlined that the agreement – biggest in India’s history — reflects growing trust, shared values, and a common commitment to peace, stability, and cooperation in an increasingly uncertain global environment. PM Modi added that the Security and Defence Partnership between India and the EU will deepen cooperation in counter-terrorism, maritime and cyber security. He noted that the India-EU partnership is for the global good.
Mother of all deals
In her statement, European Commission President termed the India-EU FTA as the ‘mother of all deal’s. She said it will create jobs for millions of workers in India and Europe. She thanked PM Modi for the exceptional hospitality, adding that it was an honour to be the Chief Guest at the Republic Day parade. She said, India has risen, and Europe is truly glad about it. She said when India succeeds, the world is more stable, prosperous and secure.
In his statement, President of the European Council Antonio Costa said the Summit sends a clear message to the world that India and the EU stand together as strategic and reliable partners at a time when the global world is being reshaped. He said that together, India and the EU must show leadership on global issues. Under the agreement, tariffs on over 90 per cent of EU goods exports to India will be eliminated or reduced, including steep duties of up to 44 per cent on machinery, 22 per cent on chemicals, and 11 per cent on pharmaceuticals, which will be mostly phased out.
Tariffs on EU beer will be cut to 50 per cent, while duties on chemicals, aircraft, and spacecraft will be eliminated for almost all products. The EU estimates the deal could double EU exports to India by 2032 and generate annual duty savings of up to 4 billion euros on European products. The bloc accounts for nearly 17 per cent of India’s total exports, giving Indian businesses a huge market to tap into with easier access under the FTA.
Green transition
The trade pact also includes 500 million euros in EU support over the next two years to help India cut greenhouse gas emissions and accelerate the green transition. EU exports to India already support around 800,000 European jobs, and the deal is expected to create many more. The EU said the deal will sharply boost exports to the Indian market and deepen economic ties under a turbulent global trade order. The pact covers economies with a combined population of around 2 billion.
India and the European Union also signed a mobility pact aimed at easing the movement of Indian students, workers, and professionals across EU countries.
