Prime Minister Narendra Modi of India and EU Commission President Ursula von der Leyen seen together in New Delhi, India, on Tuesday, when their governments signed a free trade agreement. Photo courtesy of EU Commission President Ursula von der Leyen/X
India and the European Union on Tuesday announced a landmark free trade agreement being called the “mother of all deals” as it represents about a third of global trade.
Prime Minister Narendra Modi announced the India-EU FTA in a recorded statement , saying the agreement was signed a day before while EU leaders are in the country for the India-EU summit in New Delhi.
A statement from his office said the agreement “stands as a remarkable example of coordination between two of the world’s largest economies.” It follows some two decades of on-again, off-again negotiations. The deal also comes as the two governments seek stability at a time when President Donald Trump has injected uncertainty into global commerce and international relations.
According to his office, the deal represents nearly a quarter of global gross domestic product and one-third of global trade. “Beyond trade, the deal strengthens the shared commitment to democracy and the rule of law,” New Delhi said.
Modi said that he expects the trade deal to complement agreements with Britain and the European Free Trade Association, reinforcing trade and global supply chains, while being a boost to India’s manufacturing and services sectors.
A statement from the European Union hailed the agreement as “historic” and “a milestone” in their governments’ partnership “that will significantly enhance bilateral trade and investment ties, drive shared prosperity, strengthen resilient and diversified supply chains and support sustainable and inclusive growth.”
“Europe and India are making history today,” EU Commission President Ursula von der Leyen said in a social media statement. “What we have concluded is the mother of all deals. We have created a free-trade zone of two billion people, with both sides set to benefit.”
“This is only the beginning,” she added.
Europe and India are making history today.
We have concluded the mother of all deals.
We have created a free trade zone of two billion people, with both sides set to benefit.
This is only the beginning.
We will grow our strategic relationship to be even stronger. pic.twitter.com/C7L1kQQEtr— Ursula von der Leyen (@vonderleyen) January 27, 2026
This is a developing story
