PM Narendra Modi Announces Massive India-EU Pact at Summit, Calls It a Game Changer
There was a major turning point in the relations between India and the European Union on Tuesday, when both sides finalized their long-delayed free trade agreement.
New Delhi: There was a major turning point in the relations between India and the European Union on Tuesday, when both sides finalized their long-delayed free trade agreement. This agreement is now being called the “Mother of All Deals.” Its formal announcement is to be made at the 16th India-EU Summit.
This conversation started in 2007, the matter remained cold for years and then it was revived again in 2022. Now, after almost 19 years, the agreement has been completed.
What did Prime Minister Modi say?
Prime Minister Narendra Modi confirmed the deal at the inaugural program of India Energy Week 2026. He said that a big agreement was signed between India and the European Union on Monday. Modi said that this agreement will provide new opportunities to the people of both India and Europe. In his words, it is an example of a “solid partnership” between the world's two largest economies.
#WATCH | Prime Minister Narendra Modi says, "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. This is a perfect example of… pic.twitter.com/Tgyzmliyok
— ANI (@ANI) January 27, 2026
How big is this agreement financially?
The Prime Minister said that this deal covers about 25% of the world's GDP and about one-third of global trade.
Simply put, India and the EU together influence a large part of the world's trade. This is the reason why this agreement is being considered an important step not just for two countries but for the global economy.
How will common people and businesses benefit from this?
The government says that this agreement will give a new impetus to India's manufacturing sector. Factories, supply chain and export related businesses are expected to benefit.
New avenues can also open for industries like service sector, IT, logistics and finance. PM Modi said that this will increase the confidence of investors and the environment for investing money in India will become stronger.
Is it limited to business only?
The government is not considering this as just a trade deal. Prime Minister Modi said that this agreement also strengthens the thinking of India and Europe regarding democracy, rule of law and shared values.
He said that this agreement, along with the already signed agreements with India-UK and EFTA, will further strengthen India's global economic position.
Why was there even talk on defense and security?
Meanwhile, Defense Minister Rajnath Singh met the European Union delegation. Both sides agreed to advance security and defense cooperation. There was talk of working together on issues like dealing with terrorism, cyber security, surveillance of maritime areas and military technology.
What will change next?
Government sources say that this agreement will not be implemented in one go. Its rules will gradually roll out in the coming months so that businesses and industries can adapt to the new system. Experts are of the opinion that if everything goes according to plan, this agreement can give a new direction to the relations between India and Europe. Not only this, but in the coming time it can also change the business equations of the world to some extent.
