After India and the European Union sealed the mega-sized Free Trade Agreement (FTA) in New Delhi on Tuesday, Prime Minister Narendra Modi highlighted the role of India and the EU in bringing stability in the world order. Track India-EU Summit 2026 updates
“There is turmoil in global environment; India-EU will provide stability to world order,” Modi said at a joint press meet with European Council President Antonio Costa and European Commission President Ursula von der Leyen, after the conclusion of negotiations for the India-EU FTA.
Also read: India-EU FTA opens 97% tariff lines, zero duty for most exports by 2027
“This is not just a trade agreement. This is a new blueprint for shared prosperity,” Modi said, as he added that India has concluded the largest such agreement in its history, while Costa said the India-EU FTA is the most ambitious agreement ever concluded “for a (combined) market of 2 billion people”.
Modi further dubbed India-EU ties as the global “double engine of growth” — a term usually deployed by his party BJP in domestic politics — as he called on the business leaders to take the next steps in advancing India-EU trade ties. ‘The ball is in your court,” Modi said in his address at the India-EU Business Forum. “A partnership for global good” is how he defined India-EU ties.
What PM Modi said after the trade pact
India-EU trade deal: Scale and meaning
India and the European Union on Tuesday confirmed that they had signed a historic trade pact. In a press release, the EU later said that it would save €4 billion every year in duties as India has agreed to cut down, and in some cases eliminate, tariffs on nearly 97% goods imported from Europe.
The trade pact benefits the Indian exporters and allows preferential access to 97 per cent of tariff lines for goods from India in the EU markets, covering 99.5 per cent of the trade value.
The finalisation of the trade deal comes at a time when India and Europe are facing tariffs from Donald Trump-led US administration and the deal appeared to have ruffled some feathers within the Trump administration. US treasury secretary Scott Bessent on Monday doubled down on allegations that India’s oil trade with Russia finances the war in EU-backed Ukraine.
This is the largest trade agreement that both the EU and India have ever concluded.
The free trade agreement (FTA) between India and the European Union (EU) allows preferential access to 97% of tariff lines for Indian goods in the EU markets, covering 99.5% of the trade value, HT reported.
Operationalisation of the deal, which is expected early 2027 after regulatory approvals with respective governments, will see immediate duty elimination for 70.4% tariff lines covering 90.7% of India’s exports. This will cover sectors such as textiles, leather and footwear, tea, coffee, spices, sports goods, toys, gems and jewellery and certain marine products, per the report.
According to the deal, 20.3% tariff lines covering 2.9% of India’s exports will have zero duty access over three years for items like certain marine products, processed food items, arms and ammunition.
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