India and the European Union have concluded a historic Free Trade Agreement (FTA). Prime Minister Narendra Modi announced the landmark deal during the Indian Energy Week, describing it as the “Mother of All Deals.” The agreement covers economies accounting for nearly 25% of global GDP and about one-third of global trade.
Prime Minister Modi confirmed that the agreement was formally signed on Monday. He stated that the deal would create enormous opportunities for 1.4 billion Indians and millions of European citizens. The India–EU trade pact stands as a remarkable example of cooperation between two of the world’s largest economic blocs.
The Prime Minister noted that the agreement would further strengthen India’s existing trade arrangements with the UK and the European Free Trade Association (EFTA), while also reinforcing global supply chains. He emphasized that the FTA would boost investor confidence in India and significantly expand both the manufacturing and services sectors.
Congratulating stakeholders from the textiles, gems and jewellery, leather, and footwear industries, PM Modi said the agreement would provide substantial benefits to these sectors.
India to Become the World’s Largest Oil Refining Hub
PM Modi also highlighted India’s growing energy potential, stating that the country is on track to become the world’s largest oil refining hub. India’s refining capacity is expected to rise from 260 million tonnes to 300 million tonnes. By the end of this decade, India aims to attract investments worth USD 100 billion in the oil and gas sector. Representatives from nearly 150 countries attended the Indian Energy Week.
European Commission Reacts
Reacting to the agreement, European Commission President Ursula von der Leyen said,
“Today, Europe and India made history. We have concluded the ‘Mother of All Deals.’ This is just the beginning, and our strategic partnership will grow even stronger in the future.”
