Modi highlights role in ‘stability to world order’ as India-EU lock mega FTA | Key points

India-EU trade deal LIVE: Prime Minister Narendra Modi, with European Commission President Ursula von der Leyen, in a group picture during the India–EU Business Forum, in New Delhi on Tuesday

India-EU Summit 2026 Live: 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.

Following the trade deal, Prime Minister Narendra Modi dubbed India-EU ties as the global ‘double engine of growth’ 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. He said India and EU will provide stability to the world order amid the ongoing turmoil in global environment.

Earlier, Modi hailed the trade pact and said the agreement will “drive trade, investment and innovation while strengthening our strategic relationship.” “It reflects our shared resolve to shape a stable, prosperous and future-ready economic relationship," he said in a post on X.

Modi also lauded the ‘mother of all deals’ and said that it was a “perfect” example of partnership between two major economies on the global stage. He later held restricted and delegation-level discussions with European Commission President Ursula von der Leyen and European Council president Antonio Costa on the sidelines of the 16th India-European Union Summit today.

Commerce secretary Rajesh Agrawal had earlier said that India and the EU have successfully concluded negotiations and are set to announce the Free Trade Agreement (FTA) on Tuesday, January 27.

EU's Ursula von der Leyen hailed the deal and said history has been created. “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 said in a post on X.

The trade deal comes at a time when India and Europe are targeted by Donald Trump-led US administration with tariffs.

Top developments to know:

PM Modi says deal to boost manufacturing: After he confirmed that India and the EU have signed a trade pact, PM Modi said that the move would come as a big boost to manufacturing and the services sector. He also said that the deal represented “25 per cent of the global GDP and 1/3rd of global trade”.

What EU chief said on R-Day: European Commission President Ursula von der Leyen, who was one of the chief guests at the grand Republic Day parade in Delhi on January 26, had shared a clip from the ceremony on X, with the caption: “A successful India makes the world more stable, prosperous and secure. And we all benefit”.

When will the deal take effect? While India and the EU have finalised negotiations and signed the agreement, but the trade deal will take effect sometime next year, the commerce secretary earlier said. "Legal scrubbing of the text will take 5-6 months; formal signing will be done post that,” Agrawal was quoted as saying.

Trump aide's reaction to trade deal: India and the EU finalised the trade deal despite negotiations on trade between India and the US still underway. US treasury secretary Scott Bessent fumed over the development in a news interview on Sunday. He said that European countries are financing a war “against themselves” by purchasing refined Russian oil products from India.