India and the European Union on Tuesday formally concluded a landmark Free Trade Agreement (FTA), ending nearly two decades of negotiations. Prime Minister Narendra Modi announced the breakthrough after signing a declaration alongside European Council President Antonio Costa, calling it the biggest trade pact in India’s history and a milestone for global economic cooperation.

In a post-signing statement, the Prime Minister said two of the world’s largest democratic trading blocs, with bilateral trade valued at nearly €180 billion (US$213 billion), had come together to create a “blueprint for shared prosperity.” He highlighted that the agreement would benefit businesses, consumers, and the estimated eight lakh Indians living across EU member states.

European Commission President Ursula von der Leyen described the pact as the “mother of all trade deals,” underlining its global significance. She noted that India’s rapid economic rise strengthens global security and stability, adding that Europe stands to benefit immensely from deeper engagement with one of the world’s fastest-growing economies.

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Antonio Costa echoed these sentiments, calling India and the EU strategic and reliable partners committed to shaping a resilient global order. He emphasized cooperation in areas such as climate action, green energy transition, and global peace, stating that the agreement creates an integrated market of nearly two billion people.

The India-EU FTA marks a major turnaround after negotiations, first launched in 2007, collapsed in 2016 over disagreements on market access, particularly in agriculture and dairy. Talks resumed in 2022 amid global supply chain disruptions and geopolitical uncertainty, gaining momentum as protectionist trade measures increased worldwide.

The agreement is expected to significantly reduce tariffs on most industrial and consumer goods, including a phased cut in duties on European cars from 110% to as low as 10%. It will boost Indian exports in textiles, leather, gems, and jewellery, while opening doors for EU firms in services, procurement, and investment. Overall, bilateral trade is projected to surge sharply over the next five years, cementing the deal as a turning point in India-EU relations.

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