PM Modi announces signing of India-EU free trade agreement

Prime Minister Narendra Modi on Tuesday (January 27) announced that the India-EU Free Trade Agreement (FTA) has been signed, stating that it covers 25 per cent of global GDP and one-third of global trade.

Elaborating further, PM Modi described the India-EU trade deal as one bringing scores of opportunities for 140 crore Indians and crores of Europeans.

"I am informing you about a big development … a significant agreement was signed between India and Europe yesterday (Monday). People are discussing it as a ‘mother of all deals’, and this agreement has brought a lot of opportunities for 140 crore Indians and crores of Europeans,” he said while addressing the Indian Energy Week virtually, as quoted by PTI.

'Excellent example of India-EU cooperation'

"This is an excellent example of coordination between two economies of the world. This agreement represents 25 per cent of the global GDP and one third of the global trade," he added.

Also Read: India, EU complete FTA negotiations, summit announcement today

PM Modi suggested that the free trade agreement with the EU will complement agreements with Britain and the European Free Trade Association (EFTA). “This will strengthen both global trade and the supply chain,” he said.

He congratulated the youth and all colleagues associated with sectors such as textiles, gems and jewellery, leather, and shoes.

“The agreement will prove very helpful for you,” he stated, adding that it will not only boost manufacturing in India but will also further expand the services sector.

"This free trade agreement will strengthen confidence in India for every business and every investor in the world. India is working extensively on global partnerships in all sectors," added PM Modi.

'Agreement highlights India, EU's global clout'

Elaborating further, the Prime Minister said the agreement underscored the rising economic clout and global standing of both India and the European Union, while also reinforcing shared democratic values.

Also Read: US Commerce Secretary slams India-EU trade deal over Russian oil purchases

“This agreement empowers our shared commitment towards democracy and rule of law. This Free Trade Agreement with the European Union will also complement Britain and EFTA's agreements,” Narendra Modi said, as he congratulated the country on what he described as a milestone achievement, reported ANI.

'Tangible benefits across sectors'

Addressing industry stakeholders, the Prime Minister said the agreement would offer tangible benefits across sectors. “I also congratulate colleagues associated with the sector. This agreement will be very helpful for you,” he said.

Also Read: India-EU trade deal nears final stage, says EU trade chief

He noted that the impact of the deal would be felt across both manufacturing and services. “Friends, this trade deal will not only strengthen manufacturing in India, but will also lead to further expansion of the services sector,” Modi said.

The Prime Minister said that the agreement would strengthen international confidence in India as an investment destination. “This Free Trade Agreement will further strengthen global confidence in India for businesses and investors across the world,” he said, adding that India was actively expanding global partnerships across sectors.

On energy sector

As for the energy sector, PM Modi pointed to investment potential across the value chain. “If I talk about the energy sector alone, there are immense investment opportunities across different segments linked to the energy value chain,” he said.

He also referred to reforms in exploration, including deep-sea initiatives. “You are aware of our deep-sea exploration-linked Samudra Manthan Mission,” he said, adding that India aims to raise oil and gas sector investment to one hundred billion dollars by the end of the decade.

EU Commissioner lauds deal

Later in the day, European Commission President Ursula von der Leyen said that India and EU have concluded the much-anticipated free trade agreement, touted as the 'Mother of all Deals'.

"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,” she said in a post on X.

(With agency inputs)