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'Making history today': EU Commission President hails EU-India FTA
27 Jan 2026

The European Union (EU) and India have finalized a landmark free trade agreement, dubbed the "Mother of all Deals."

European Commission President Ursula von der Leyen announced the historic milestone on the social media platform X. She said, "Europe and India are making history today. We have concluded the mother of all deals."

The deal is expected to create a free trade zone for two billion people.

Von der Leyen added, "This is only the beginning."

Indian and EU leaders meet to celebrate agreement
Diplomatic meeting

The announcement of the free trade agreement came after a meeting between Indian Prime Minister Narendra Modi and top EU leaders, including the President of the European Council, Antonio Costa, European Commission President, Ursula Von Der Leyen, and EU High Representative for Foreign Affairs Kaja Kallas.

PM Modi hailed the India-EU Free Trade Agreement as a major step in strengthening ties between two of the world's largest economies.

'Strong message cooperation is best answer'
Economic significance

Von der Leyen highlighted that the deal "is a strong message that cooperation is the best answer to global challenges. This trade will integrate our supply chain and strengthen our joint manufacturing power."

She added, "It will cut up to four billion euros in annual tariffs for exporters of all sizes, and it will create good jobs for millions of workers here in India and in Europe."

Agreement to benefit various sectors in India
Sectoral impact

The free trade agreement is expected to have a positive impact on both the manufacturing and services sectors in India.

PM Modi congratulated all stakeholders associated with different sectors, saying the agreement would be highly beneficial for them.

The deal makes India the third Asian country, after Japan and South Korea, to have such an agreement with the EU.