Last Updated:January 27, 2026, 19:23 IST
Amit Shah said the FTA reflects PM Modi’s diplomatic vision and strengthens the goal of an Atmanirbhar Bharat through a trusted, balanced and mutually beneficial partnership.
TL;DR: India and the European Union have announced the conclusion of negotiations for a Free Trade Agreement (FTA), marking a major milestone in one of India’s most strategic economic partnerships.
India and the European Union have announced the conclusion of negotiations for a Free Trade Agreement (FTA), marking a major milestone in one of India’s most strategic economic partnerships. The deal is designed as a modern, rules-based trade partnership between the world’s fourth and second largest economies.
Amit Shah welcomes the deal
Union Home Minister Amit Shah hailed the agreement as historic. In a post on X, he said the India-EU trade deal marks a defining moment in India’s global trade engagement.
He said it reflects Prime Minister Narendra Modi’s diplomatic vision and strengthens the goal of an Atmanirbhar Bharat through a trusted, balanced and mutually beneficial partnership.
His post on X reads, “The #IndiaEUTradeDeal marks a defining moment, securing a strategic breakthrough in India’s global trade engagement. Embossing PM Shri @narendramodi Ji’s astute diplomatic vision on a global platform, the deal augments India’s mission for an ‘Atmanirbhar Bharat’ through win-win agreements securing a trusted, mutually beneficial, and balanced partnership."
Fadnavis calls it a historic day
Maharashtra Chief Minister Devendra Fadnavis described the signing of the India-EU FTA as a historic day. He said the agreement would change the entire space of international trade and affects 30 per cent of the world’s population and 25 per cent of global trade.
He added that the deal is among the biggest in world history and would be especially beneficial for India, including Maharashtra.
Ireland welcomes FTA
Ireland’s Ambassador to India, Kevin Kelly, welcomed the agreement and said trade deals are vital for economic growth. He said Ireland’s own journey from poverty to prosperity showed the value of being part of a common market. He added that fewer tariffs help increase trade and benefit consumers, companies and producers in both India and Europe.
India-EU deal
The combined market of India and the EU is estimated at over INR 2091.6 lakh crore, or USD 24 trillion, covering nearly two billion people. The FTA provides unprecedented market access for more than 99 per cent of India’s exports by trade value, while protecting sensitive sectors and development priorities.
Bilateral merchandise trade between India and the EU was valued at about INR 11.5 lakh crore in 2024–25. India’s exports to the EU stood at around INR 6.4 lakh crore. Trade in services reached INR 7.2 lakh crore in 2024, showing strong and growing economic ties.
Boost for Indian businesses
The agreement gives Indian exporters preferential access across 97 per cent of EU tariff lines, covering 99.5 per cent of trade value. Many labour-intensive sectors such as textiles, leather, footwear, gems and jewellery will see immediate or phased duty elimination. These sectors, worth over Rs 2.87 lakh crore in exports, are expected to gain competitiveness, create jobs and integrate more deeply into European value chains.
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News india ‘PM Modi’s Astute Vision...’: Amit Shah Hails India-EU FTA As Defining Moment In Global Trade
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