New Delhi: Prime Minister Narendra Modi has described the India European Union free trade agreement as the “mother of all deals”, saying it will significantly boost manufacturing, strengthen services and create wide ranging opportunities for businesses and people on both sides. The agreement marks a major step forward in economic cooperation between two of the world’s largest economies.
As India and the European Union move closer to finalising the long awaited pact, the Prime Minister said the scale and impact of the agreement make it one of the most important trade initiatives globally. Together, India and the EU account for around 25 percent of global gross domestic product and nearly one third of global trade, underlining the strategic weight of the deal.
Speaking during a virtual address at Indian Energy Week, PM Modi said the agreement is being widely discussed across the world for its potential to reshape trade relations. He noted that the pact would bring substantial benefits to India’s 1.4 billion citizens as well as millions of people across European nations by expanding economic opportunities and deepening cooperation.
The Prime Minister highlighted that the agreement would give a strong push to India’s manufacturing sector while also supporting services. He said key industries such as textiles, gems and jewellery, and leather goods stand to gain from improved access to European markets. He added that the India EU agreement would complement the India UK trade deal, further strengthening India’s global trade footprint.
PM Modi also emphasised that the agreement goes beyond commerce, reflecting shared values between India and Europe. He said the pact reinforces a common commitment to democracy, the rule of law and predictable economic engagement between like minded partners.
Negotiations for the India EU free trade agreement began in 2007 and progressed intermittently over the years. The conclusion of talks now reflects changing global economic and strategic dynamics, with both sides describing the agreement as balanced and forward looking.
The proposed deal is expected to reduce tariffs on a wide range of consumer and industrial goods traded between India and EU member states, while excluding certain agricultural products. It is also expected to provide improved market access for European car exports, subject to specific limits.
Overall, the agreement is being seen as a landmark moment that could redefine India EU economic relations and provide long term stability and growth in an increasingly uncertain global environment.
