Union Finance Minister Nirmala Sitharaman said that the 16th India–EU Summit held in New Delhi in January has injected “fresh momentum” into India’s strategic partnership with the European Union. Speaking at the Europe Day 2026 celebrations, she highlighted that the summit marked a significant turning point in strengthening diplomatic, economic, and security cooperation between the two sides.

Sitharaman noted that the summit outcomes reflect what she described as a “transformative phase” in India–EU relations. She said the discussions and agreements reached during the high-level meeting have elevated the partnership to a more comprehensive and structured level, with a long-term vision focused on trade, investment, technology, and strategic collaboration across multiple sectors.

One of the key developments highlighted was the conclusion of negotiations for the India–EU Free Trade Agreement (FTA), which both sides had announced on 27 January. The agreement has been widely described as a landmark deal due to its scale and potential impact. Officials have referred to it as the “mother of all deals” because of its wide-ranging implications for global trade and market access.

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The minister also pointed to the signing of the Security and Defence Partnership and the adoption of a Comprehensive Framework on Mobility as major achievements. Along with the FTA, these agreements form part of a broader strategic roadmap titled “Towards 2030: India–EU a Joint Comprehensive Strategic Agenda,” which is expected to guide cooperation between India and the 27-member bloc over the next several years.

According to European Union Ambassador to India Herve Delphin, the FTA represents a massive economic opportunity, covering nearly two billion people and roughly a quarter of global GDP. He also stressed the importance of completing legal vetting of the 1,000-page agreement, which is currently underway and expected to be finalised in the coming months before signing later this year.

Once implemented, the agreement is expected to significantly reduce trade barriers, with the EU eliminating tariffs on over 99% of Indian exports and India providing improved access for nearly 97% of EU goods. Officials say this will benefit sectors such as textiles, leather, gems and jewellery, and agricultural products on the Indian side, while also making European machinery, medical equipment, and aviation products more affordable in India. The agreement is currently projected to come into force in early 2027.

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