‘Mother of All Deals’: PM Modi Hails India–EU FTA as Game Changer

Prime Minister Narendra Modi on Tuesday hailed the India–European Union Free Trade Agreement (FTA) as a landmark partnership between two major global economies, calling it the “mother of all deals” and a turning point for trade, manufacturing, services and investor confidence.

Speaking at the India Energy Week 2026 inauguration, the Prime Minister said the agreement has already drawn global attention for its scale and ambition. “Yesterday, a big agreement was signed between the European Union and India. People are calling this the mother of all deals. This agreement will bring major opportunities for the public in India and Europe,” Modi said, describing it as a perfect example of cooperation between two large economies.

Modi underlined that the FTA represents nearly 25% of global GDP and about one-third of global trade, reflecting the growing economic weight and strategic relevance of both India and the EU. He added that the agreement reinforces shared democratic values, rule of law and a rules-based international order.

“This Free Trade Agreement with the European Union will complement Britain and EFTA’s agreements,” the Prime Minister said, congratulating industry stakeholders and the people of India on what he described as a milestone achievement.

Manufacturing and Services to Get a Boost

Emphasising domestic impact, Modi said the deal would give a major boost to manufacturing in India, while also driving expansion in the services sector. “Manufacturing will get a huge boost from this trade deal with the EU, and the services sector will also expand. The FTA will boost the confidence of every investor and businessman to invest in India,” he said.

He added that the agreement would strengthen global confidence in India as an investment destination, as the country actively deepens partnerships across sectors.

Trade and investment remain the backbone of the India–EU relationship. The European Union is India’s second-largest trading partner in goods, accounting for 11.5 per cent of India’s total goods trade. In 2024, EU–India trade in goods crossed €120 billion, including €71.4 billion in EU imports from India and €48.8 billion in exports to India. Over the last decade, bilateral goods trade has doubled, with EU imports from India rising 140% and exports to India growing 58%.

Trade in services has expanded even faster. In 2024, EU–India services trade exceeded €66 billion, recording a growth of 243% over the past decade, driven by IT, professional services, telecommunications and transport.

Energy and Investment Focus

Linking the deal to India’s energy ambitions, Modi highlighted vast investment opportunities across the energy value chain. He pointed to reforms in exploration, deep-sea initiatives such as the Samudra Manthan Mission, and efforts to scale up investment in oil and gas.

“We are making efforts to take investment in our oil and gas sector to $100 billion by the end of this decade,” he said, signalling the government’s intent to attract long-term global capital.

Negotiations on the India–EU FTA were first launched in 2007, stalled for years, and were restarted in 2022. The conclusion of the agreement now sets the stage for deeper trade integration, stronger investment flows and shared prosperity between the two sides.

(With inputs from ANI and yMedia)