India-EU FTA — Mother of All Deals

Highlights

India-EU Relations Enter a New Era of Alignment: PM
Historic India-EU FTA Opens Market Access for Labour-Intensive Products: PM
PM Calls for Whole-of-Society Partnership to Scale India-EU Relations
India-EU should become Double Engine of Global Growth: PM

Prime Minister Shri Narendra Modi addressed the India-European Union Business Forum at Bharat Mandapam in New Delhi today. Speaking on the occasion, Prime Minister expressed happiness at participating in the India-European Union (EU) Business Forum. He remarked that the visit of the Presidents of the European Union Council and Commission to India is not an ordinary diplomatic tour but marks the beginning of a new era in India-EU relations. Shri Modi highlighted that for the first time, EU leaders joined as Chief Guests at India’s Republic Day, India and the European Union concluded the largest Free Trade Agreement in India’s history, and today, with the presence of numerous CEOs, the India-EU Business Forum is being organized at such a large scale. He stated that these achievements symbolize the unprecedented alignment between the world’s two largest democratic powers.

The Prime Minister emphasized that this alignment is not accidental; as market economies, India and the EU share common values, joint priorities for global stability, and natural connections between their people as open societies. He underlined that on this strong foundation, the partnership is reaching new heights and is being established as one of the most influential partnerships in the world, with clear results visible. Shri Modi noted that in the last ten years, trade has doubled to 180 billion euros, more than 6,000 European companies are operating in India, and investments from the EU in India exceed 120 billion euros. He further remarked that 1,500 Indian companies are present in the EU, with Indian investments there reaching nearly 40 billion euros. The Prime Minister highlighted that today, India and European companies are deeply collaborating in R&D, manufacturing, and services, and business leaders are both the drivers and beneficiaries of this cooperation.

Prime Minister Modi stated that now is the time to make this partnership a ‘whole of the society partnership.’ He remarked that with this vision, a comprehensive FTA has been completed today, which will provide easy access for India’s labour-intensive products to the European Union market. Shri Modi highlighted that textiles, gems and jewellery, auto parts, and engineering goods will benefit, while fruits, vegetables, processed food, and marine products will create new opportunities. He underlined that this will directly benefit farmers, fishermen, and also the services sector, particularly IT, education, traditional medicine, and business services.

The Prime Minister observed that global business is undergoing major upheaval, with companies rethinking their market strategies and partnerships. He emphasized that at such a time, this FTA sends a clear and positive message to the business world, serving as an invitation to both sides’ business communities to build capable, reliable, and future-oriented partnerships. Shri Modi expressed confidence that business leaders will fully utilize the opportunities arising from this FTA.

Shri Modi further remarked that India and the European Union share several priorities that can benefit business partnerships. He outlined three key priorities: first, in a world where trade, technology, and critical minerals are being weaponized, there is a need to jointly de-risk dependencies. He asked whether the business community can reduce external reliance in EVs, batteries, chips, and APIs, and build a shared option for trusted supply chains. Second, he noted that both India and the EU focus on defense industries and frontier technologies, urging greater collaboration in defense, space, telecom, and AI. Third, he stressed that a clean and sustainable future is a priority for both sides, calling for joint research and investment in green hydrogen, solar energy, and smart grids. Shri Modi added that industries should also work together on small modular reactors and sustainable mobility, while developing solutions in water management, circular economy, and sustainable agriculture.

The Prime Minister remarked that after today’s historic decisions, a special responsibility now rests with the business community. He emphasized that the next step must be taken by the business community, stating that “The Ball Is In Your Court.” Shri Modi highlighted that only through mutual cooperation will the partnership gain trust, reach, and scale. He underlined that with collective efforts, shared prosperity can be achieved. The Prime Minister concluded by urging everyone to combine their respective strengths and become a double engine of growth for the entire world.

President of the European Commission, Ms. Ursula von der Leyen, Indian and European Business Leaders were present at the event.

List of Outcomes: Visit of President of the European Council and President of the European Commission to India