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'Free trade zone of two billion people': EU president Ursula von der Leyen on pact with India
Leaders on both India and EU have described the free trade pact as the “mother of all deals” for its scale and far-reaching economic impact.
European Commission President Ursula von der Leyen on Tuesday announced the conclusion of the long-awaited India–European Union free trade agreement, calling it a historic moment for bilateral ties.
Leaders on both sides have described the free trade pact as the “mother of all deals” for its scale and far-reaching economic impact. The announcement formally ends negotiations that were relaunched in June 2022 after a gap of almost nine years. Follow India EU trade deal live updates
Sharing a photograph with Prime Minister Narendra Modi, von der Leyen wrote on X, “Europe and India are making history today. We have concluded the mother of all deals.”
“We have created a free trade zone of two billion people, with both sides set to benefit. This is only the beginning. We will grow our strategic relationship to be even stronger,” she added.
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‘People are calling it mother of all deals,’ says PM Modi
Prime Minister Narendra Modi on Tuesday confirmed the agreement, underlining its global economic significance and potential benefits for citizens on both sides.
Calling it a model partnership, the Prime Minister said, “This is a perfect example of a partnership between two major economies of the world...This agreement represents 25 per cent of the global GDP and 1/3rd of global trade.”
“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,” PM Modi added.
What the FTA means for trade
The India-EU trade deal is expected to integrate a market of nearly two billion people and account for close to a quarter of global gross domestic product.
The European Union is currently India’s largest trading partner, with bilateral trade in goods valued at $135 billion in 2023–24. The free trade agreement is expected to significantly boost trade flows between India and the EU’s 27 member states.
According to earlier reporting by HT, the pact may allow duty-free access to over 90 per cent of Indian goods in the EU market, which includes major economies such as Germany, France, Italy, Spain and Belgium.
The agreement is also seen as timely, coming amid global efforts to derisk supply chains and ongoing trade disruptions linked to policies of the President Donald Trump administration in the US.
Commerce Secretary Rajesh Agrawal had a day earlier confirmed that negotiators from both sides had successfully wrapped up on what he described as an “ambitious, balanced, forward-looking and mutually beneficial India-EU free trade agreement (FTA).”
The announcement came during a two-day India visit by European Council President Antonio Costa and Ursula von der Leyen. Both leaders were chief guests at the Republic Day celebrations and later held a summit with Prime Minister Modi, where the trade agreement was formally highlighted.
