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The proposed Free Trade Agreement (FTA) between India and the European Union (EU) of 27 countries has reached its final stage. Union Commerce and Industry Minister Piyush Goyal has called this agreement the ‘Mother of All Deals’. He has indicated that this historic agreement could be formally announced on January 27.

This announcement is possible during the visit of top EU leaders to India. European Council President Antonio Luis Santos da Costa and European Commission President Ursula von der Leyen will be in India from January 25 to 27. He will also attend the 77th Republic Day celebrations as the chief guest.

‘Super deal’ for Indian exporters

Union Minister Piyush Goyal said on Friday that this agreement will prove to be very beneficial for both India and the European Union. According to him, this is like a ‘super deal’ for Indian export sectors, which will open new markets and further strengthen India’s position in global trade.

Goyal also emphasized that India and the European Union are not competitors but complement each other. Trade in goods and services between the two is largely balanced.

The biggest trade deal ever

This agreement is being considered as India’s biggest trade agreement till date. The European Union includes 27 developed countries including France, Germany, Italy, Spain, the Netherlands and Sweden. Since 2014, the central government has signed seven trade agreements including with Australia, Britain, UAE and Oman, but this agreement with the European Union will prove to be a milestone.

This agreement is coming at a time when global trade is affected by high tariffs imposed by the US. This FTA will also help Indian exporters to reduce their dependence on China.

Business statistics and global importance

The European Union is India’s largest trading partner. According to official data, bilateral trade between India and the European Union was worth $136.53 billion in the financial year 2024-25. About 17 percent of India’s total exports go to the European Union.

At the same time, India’s share in the total foreign exports of the European Union is 9 percent. With a total GDP of approximately $20 trillion and a population of more than 45 crore, the European Union is a major force in the global economy, with this agreement to give a new impetus to the Indian economy.