TLDR
- India and the European Union concluded a trade agreement after nearly two decades of negotiations.
- Prime Minister Modi confirmed the deal, calling it the “mother of all deals” for its expected global impact.
- The EU is India’s largest trading partner, with bilateral trade reaching $136.5 billion in FY 2024–25.
- Legal vetting will take 5–6 months, with full implementation expected within a year.
- The deal follows recent trade agreements by both India and the EU with other global partners.
India and the European Union have finalised a major trade agreement after nearly two decades of negotiations. Prime Minister Narendra Modi confirmed the deal during a speech on Tuesday, calling it a turning point for bilateral relations. Full details will be announced at the India–EU summit in New Delhi.
Modi Confirms Pact and Stresses Economic Gains
According to Reuters, Prime Minister Narendra Modi addressed the public on Tuesday and stated that the agreement between India and the European Union had been completed. Referring to the deal, he said, “People around the world are calling this the mother of all deals,” highlighting its expected impact on the global stage.
Modi noted that it would benefit India’s 1.4 billion citizens and create new opportunities for people across Europe. The agreement marks the conclusion of nearly twenty years of trade talks that were often paused due to policy disagreements. Modi confirmed that the deal was finalised the day before the announcement.
The European Union is India’s largest trading partner, with trade valued at $136.5 billion in the fiscal year ending March 2025. The agreement will open India’s market to European goods while improving access for Indian exports into Europe. It also includes cooperation in areas such as services, digital trade, and investment frameworks. European Commission President Ursula von der Leyen and European Council President Antonio Costa joined Modi at the summit venue. Officials confirmed that the formal signing will follow later this year.
Legal Vetting Begins as Both Sides Prepare Implementation
An Indian government official stated that legal review of the trade agreement would take five to six months. The formal signing will follow once legal procedures and documentation are complete, according to the official.
Implementation is expected within one year, pending necessary approvals and internal coordination. Regulatory teams from both parties have started preparing documents and legal frameworks for enforcement. The official also confirmed that all major terms were settled before the announcement.
The agreement comes after similar EU deals with Mercosur, Indonesia, and Mexico. India has also concluded trade deals with the UK, New Zealand, and Oman. The India–EU deal follows the breakdown of India–U.S. trade talks after tariff disputes.
