Following the conclusion of the India-EU Free Trade Agreement, European Commission President Ursula von der Leyen said that India and EU are two giants who have decided to deliver a win-win deal. She said that when India succeeds, the world is more secure.
Following the conclusion of the India-EU Free Trade Agreement (FTA), European Commission President Ursula von der Leyen on Tuesday said that India and EU are two giants who have decided to deliver a win-win deal. She said that when India succeeds, the world is more secure.
India and EU on Tuesday announced the FTA that has been described as the ‘mother of all deals’ by both the sides. After formalities are completed in the next few months, the FTA is expected to come into effect early next year.
Von der Leyen, who was also the chief guest at the Republic Day celebrations on Monday, thanked Prime Minister Narendra Modi for the hospitality.
Von der Leyen said, “India has risen and Europe is truly glad about it because when India succeeds, the world is more stable, more prosperous. and more secure. And we all benefit.”
Von der Leyen said that it was a step towards making the world a more stable and prosperous place. She said the conclusion of the FTA was the culmination of a year of negotiations.
“Prime Minister Modi, dear friend, one year ago, the full College of Commissioners came to India. You mentioned it. This is also a very special memory for me. It showed the seriousness of our intent and the strength of our commitment. Today, we reap the fruits of that commitment,” said von der Leyen.
#WATCH | Delhi | President of the European Commission, Ursula Von Der Leyen says, “Thank you very much for the exceptional hospitality we experienced. It was such an honour for us to be your chief guests at the Republic Day yesterday. This is a memory I will carry for a lifetime… pic.twitter.com/joZQiTPX58
— ANI (@ANI) January 27, 2026
Von der Leyen dubbed India and the EU as two giants who chose partnership, sending a strong message cooperation is the best message for global challenges. As for the trade deal, she said that it will cut €4 billion of tariffs.
Under the India-EU trade deal, tariffs on most of the goods are set to be reduced and both sides are set to get broader access to each other’s markets under a mutually beneficial arrangement. Considering Indian sensitivities, agriculture and dairy have been exempted from the trade deal.
Under the FTA, India will gain substantially from improved access to the EU market for textiles, seafood, and chemical exports —sectors hit particularly hard by US tariffs— the EU will benefit from easier entry into India for high‑end machinery, aircraft and aircraft components, automobiles, electronics, and medical devices.
Owing to the nature of Indian and EU industries and exports, increasing bilateral trade would complement each other’s domestic industrial base rather than competing with it, according to an assessment by Global Trade Research Initiative (GTRI).
While India chiefly exports labour‑intensive, downstream and processing‑based products, the EU supplies capital goods, advanced technology, and industrial inputs, according to GTRI’s assessment carried by PTI.
When India exports smartphones, garments and textiles, footwear, tyres, pharmaceuticals, auto parts, refined fuels, and cut diamonds to the EU, these largely replace EU imports from third countries rather than compete with Europe’s own manufacturing as most of such manufacturing had long been outsourced, meaning that India’s exports do not threaten Europe’s industrial base, as per the assessment.
Similarly, EU exports to India are poised to complement Indian industry rather than displace it as the EU exports high‑end machinery, aircraft, electronic components, chemicals, medical devices, and metal scrap, which feed Indian factories, recycling firms, and MSME clusters, raising productivity and export competitiveness, according to GTRI.
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