India and the European Union have formally sealed what leaders on both sides are calling one of the most ambitious trade agreements in modern history, marking a turning point in relations between the two democratic power blocs. Prime Minister Narendra Modi on Tuesday described the moment as the beginning of a “decisive new chapter” that goes far beyond commerce and reshapes global cooperation.
Calling the timing symbolic, the Prime Minister linked the agreement to recent diplomatic milestones. “Yesterday was historic when European Union leaders joined India’s Republic Day celebrations for the first time. Today is equally historic, as two major democracies are writing a decisive chapter in their relationship,” he said.
Highlighting the scale of the agreement, PM Modi said India has now concluded its largest-ever Free Trade Agreement. “On 27th January, India signed this FTA with 27 European nations. This will boost investment, create new innovation partnerships and strengthen global supply chains. This is not just a trade agreement; it is a blueprint for shared prosperity,” he stated.
The Prime Minister underlined that the partnership has a broader strategic vision. “We are launching an ambitious and holistic agenda for the next five years. In a complex global environment, this roadmap will provide direction, accelerate innovation, strengthen defence cooperation and deepen people-to-people ties,” Modi said, adding that India–EU cooperation is aimed at “global good.”
Referring to global instability, he noted, “There is turmoil in the international order. In such times, India–EU cooperation will help strengthen stability in the international system.” Modi also said discussions covered major global challenges, including the Ukraine conflict, and stressed the need for reforms in global institutions. “This is the moment when we truly begin a new chapter between India and the European Union,” he added.
Echoing this sentiment, European Council President Antonio Costa described the deal as a landmark in global trade diplomacy. “India is the world’s fastest-growing major economy. Trade between our continents has flowed for centuries, but today’s agreement is of historic importance. It is one of the most ambitious trade agreements ever concluded, creating a market of 2 billion people,” Costa said.
He further emphasised the geopolitical importance of trade, stating, “Trade is a crucial stabiliser and a foundation of economic growth. Trade agreements strengthen a rules-based economic order and promote shared prosperity.” Costa also said both sides share a responsibility to uphold international law, with the United Nations Charter at its core.
European Commission President Ursula von der Leyen also praised the conclusion of the pact, describing it as a partnership of equals. She said the agreement reflects “a story of two giants choosing cooperation,” adding that the deal represents a clear “win-win” for both India and Europe.
