India and the European Union on Tuesday sealed a landmark Free Trade Agreement, concluding years of negotiations and setting the stage for what leaders on both sides describe as the most far-reaching trade partnership either has ever entered into. The agreement arrives amid global economic uncertainty and rising geopolitical tensions, projecting confidence in open markets and rule-based international trade.

Addressing the India–EU Business Forum, Prime Minister Narendra Modi described the pact as a decisive shift in India’s global economic engagement. “Now is the time to turn this partnership into a whole-of-society partnership. With that spirit, we have finalised this comprehensive agreement,” he said, calling it “the biggest deal” for India’s trade future.

The Prime Minister highlighted that Indian investments in the European Union have climbed close to €40 billion, while collaboration between companies from both sides now spans research, innovation, manufacturing, and high-end services. According to Modi, the FTA will unlock fresh opportunities for India’s labour-driven sectors, including textiles, gems and jewellery, engineering goods, and auto components.

“Our farmers and fishermen will see direct benefits,” Modi said, adding that agricultural produce, marine exports, fruits, vegetables, and processed foods will gain smoother access to European markets. He also pointed to major gains for India’s services economy, especially in information technology, education, traditional medicine, and professional services.

At a time when global firms are reassessing supply chains and investment destinations, Modi said the agreement sends a strong signal of stability. “When the world is uncertain, this FTA sends a clear, positive message to global business,” he noted.

The Prime Minister underlined the symbolic weight of the moment, noting that the Presidents of the European Council and the European Commission are visiting India as chief guests for Republic Day celebrations for the first time. “This is not a routine visit. It marks the beginning of a new chapter in India–EU relations,” he said.

Trade between India and the EU has doubled over the past decade, touching nearly €180 billion. More than 6,000 European companies operate in India, while around 1,500 Indian firms have a presence across EU nations. Modi said this growing partnership rests on shared democratic values, economic openness, and deep people-to-people ties, adding, “As open societies and market economies, our connection is natural and enduring.”