Prime Minister Narendra Modi on Tuesday confirmed that India and the European Union have signed a historic free trade agreement, hailing it as the “mother of all deals”. The agreement, concluded on the sidelines of the 16th India-EU Summit, is expected to significantly deepen economic, defence, and technological cooperation between the two major global economies. Together, India and the EU account for 25% of the world’s GDP and a third of global trade, underscoring the pact’s global significance.

The signing follows restricted and delegation-level talks between PM Modi, European Commission President Ursula von der Leyen, and European Council President António Costa. Beyond trade, the discussions are focused on security and defence cooperation, climate action, critical technologies, and reinforcing the rules-based global order.

European Commission Vice-President Kaja Kallas described the signing of the Security and Defence Partnership as a “milestone”, highlighting opportunities for joint initiatives both bilaterally and in multilateral forums. During a meeting with India’s Defence Minister Rajnath Singh and the chiefs of the Indian tri-services, Kallas emphasised that the partnership will allow the two sides to further expand defence collaboration in the years ahead.

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Ahead of the summit, Ursula von der Leyen said, “A successful India makes the world more stable, prosperous, and secure. And we all benefit.” The FTA is expected to boost engagement and cooperation, particularly in sectors such as trade, critical technologies, and green energy. The pact also takes on additional significance amid growing tensions between Europe and the US, with the Trump administration expressing displeasure at the deal’s finalisation. US Treasury Secretary Scott Bessent noted that the EU’s agreement with India came despite US tariffs on Indian purchases of Russian oil, highlighting shifting global trade dynamics.

The summit also included the India-EU Business Forum and other bilateral engagements, reinforcing the broader economic and strategic partnership between New Delhi and Brussels. With the deal now signed, both sides are expected to implement measures that facilitate trade, investment, and collaboration in defence and emerging technologies, setting the stage for a strengthened India-EU alliance on the global stage.

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