Unveil strategic shield against global turbulence
India and the European Union (EU) on Tuesday concluded a historic free trade agreement (FTA), described by European Commission President Ursula von der Leyen as the “mother of all deals,” alongside two pacts on security, defence, and mobility of Indian talent to Europe.
The deals were unveiled after Prime Minister Narendra Modi hosted EU leaders von der Leyen and European Council President Antonio Costa. In line with a rules-based global order, the two sides also rolled out a five-year India-EU Comprehensive Strategic Agenda and finalised 13 agreements, including the FTA.
Modi called the FTA India’s biggest trade deal, saying it would open European markets to Indian farmers and small industries, boost manufacturing and services, and strengthen supply chains globally. “This is not just a trade agreement. This is a new blueprint for shared prosperity,” he said. Negotiations for the deal had spanned 18 years, with formal signing expected after six months of legal scrubbing.
Von der Leyen said the FTA will cut up to €4 billion in annual tariffs for European exporters, creating jobs in both India and Europe. “It brings together Indian skills, services and scale with Europe’s technology, capital and innovation,” she said, highlighting the deal’s potential to reduce strategic dependencies amid growing global trade tensions. She also emphasised the first-ever India-EU defence partnership, calling it a trust-based platform to enhance security and resilience.
Costa said the agreements reinforce a rules-based global order and create a market of two billion people. He stressed the need for prosperity to be underpinned by security, citing cooperation on Indo-Pacific and global security threats and efforts toward a just and lasting peace in Ukraine.
Modi said the India-EU agenda will accelerate innovation, deepen people-to-people ties, and expand trilateral projects from the Indo-Pacific to the Caribbean. He highlighted the India-Middle East-Europe Economic Corridor (IMEC) as a key trade and sustainable development link.
The summit reaffirmed commitments to shared democratic values, multilateralism, and UN-led rules-based international order, while promoting inclusive growth, climate action, regional integration, and supply chain resilience. Both sides agreed to develop Green Shipping Corridors, enhance aviation cooperation, and coordinate on reforms in multilateral institutions including the UN.