The FTA is expected to help Indian exporters diversify their shipments. It will also help reduce dependence on China. The EU is also facing a threat of high US tariffs
Prime Minister Narendra Modi on Tuesday hailed the India-EU Free Trade Agreement (FTA) after both sides signed the historic deal, paving the way for more streamlined business between Europe and India.
“Today, India has concluded the biggest Free Trade Agreement in its history. On 27th January, India signed this FTA with 27 European nations…This will boost investment, form new innovation partnerships and strengthen supply chains at the global level…This is not just a trade agreement, it is a blueprint for shared prosperity,” PM Modi said in a joint press conference with European Union Chief Ursula Von der Leyen and European Council President Antonio Costa.
#WATCH | Delhi | On signing of India-EU Free Trade Agreement, PM Modi says, “Today, India has concluded the biggest Free Trade Agreement in its history. On 27th January, India signed this FTA with 27 European nations…This will boost investment, form new innovation partnerships… pic.twitter.com/gQcJwXZWPF
— ANI (@ANI) January 27, 2026
Von der Leyen is in New Delhi with European Council President Antonio Costa, EU foreign minister Kaja Kallas, and other top EU officials to attend the India-EU Summit. She and Costa were also the chief guests at the Republic Day celebrations on Monday.
“Our summit sends a clear message to the world. At a time when the global order is being fundamentally reshaped, the European Union and India stand together as strategic and reliable partners. Today, we are taking our partnership to the next level,” Costa said.
The imposition of high tariffs by the US has disrupted the global flow of goods. India is facing steep 50 per cent tariffs. The FTA is expected to help Indian exporters diversify their shipments. It will also help reduce dependence on China. The EU is also facing a threat of high US tariffs.
The deal, touted as the biggest in
India’s and the EU’s partnership, will make European goods, particularly food and energy products, much cheaper for Indian buyers.
The tariff reduction would slash the prices of European fruit juices, processed foods, olive oil, margarine, and other vegetable oils. Along with this, duties on European liquor, which are currently as high as 150 per cent, will be reduced to 40 per cent.
With inputs from agencies
End of Article
