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The largest free trade agreement ever completed between India and European Union, know its impact

by Deepak Verma
January 27, 2026
in World
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The largest free trade agreement ever completed between India and European Union, know its impact
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European Commission President Ursula von der Leyen said India and the European Union have concluded the much-awaited free trade agreement, which is being touted as the ‘mother of all agreements’.

In a post on Twitter on Tuesday, he described the moment as historic and expressed optimism about further strengthening the strategic relationship.

He said, “Europe and India are making history today. We have signed the biggest agreement ever. We have created a free trade area of ​​two billion people, which will benefit both sides. This is just the beginning. We will further strengthen our strategic relationship.”

The Union Commerce Minister described the agreement as “a strong partnership for the world”.

On Tuesday, Prime Minister Narendra Modi met European Council President Antonio Luis Santos da Costa and European Commission President Ursula von der Leyen in the national capital Hyderabad. The two leaders held a bilateral meeting at Hyderabad House, which was also attended by EU High Representative for Foreign Affairs and Security Policy Kaja Kallas.

The leaders demonstrated the spirit of harmony during the meeting held at Hyderabad House. Earlier, EU leaders paid tribute to Mahatma Gandhi by paying floral tributes at the memorial at Rajghat during his state visit to India.

The ceremony, held in the presence of senior Indian officials, was part of his ongoing state visit and coincided with the 16th India-EU Summit to be held in New Delhi, which will be co-hosted by Prime Minister Narendra Modi.

After the wreath laying ceremony, the European leaders signed the guest book at the memorial site and paid floral tributes to Mahatma Gandhi.

European Council President Antonio Costa shared photos from his visit to Rajghat and expressed his views on the eternal values ​​of Mahatma Gandhi.

He said, “Paying tribute to Mahatma Gandhi, his words are as powerful today as they were then: ‘Peace arises not from the struggle of arms, but from justice, when unarmed nations follow justice even in the face of adversity.'”

The visit comes at a time when both sides have completed their discussions on a free trade agreement, which is expected to strengthen their shared commitment to democracy and the rule of law.

Prime Minister Narendra Modi on Tuesday praised the India-EU Free Trade Agreement, calling it the ‘mother of all agreements’ and saying it symbolizes the partnership between the world’s two major economies. The agreement is also important because it links two major economies that control a quarter of the world’s gross domestic product (GDP).

Prime Minister Modi made these comments while virtually addressing the inaugural ceremony of India Energy Week 2026.

He further said that the free trade agreement with the EU would complement the existing agreements with the United Kingdom and members of the European Free Trade Association (EFTA).

Congratulating people from various sectors, the Prime Minister said that this agreement will be extremely beneficial for the industry stakeholders. He further said that this trade agreement will have a positive impact on both manufacturing and service sectors in the country.

Emphasizing the broader global impact, Prime Minister Modi said that this free trade agreement will boost global confidence in India.

“This free trade agreement will further strengthen global confidence in India for businesses and investors around the world,” he said, adding that India is actively working on global partnerships in all sectors.

With the signing of this agreement, India has become the third Asian country after Japan and South Korea to sign such an agreement with the EU.

Tags: european unionINDIAPM Narendra Moditrade deal done

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