India–EU Free Trade Agreement | Mother of Deal Signed 16th Summit

India and the European Union have just hit a significant milestone in their diplomatic and economic journey. On January 27, 2026, during the 16th India–EU Summit, both parties proudly announced that they’ve wrapped up negotiations on a long-anticipated Free Trade Agreement (FTA). This summit, hosted by Narendra Modi, marks a pivotal moment in India–EU relations after nearly two decades of discussions.

India and the European Union have officially signed documents that finalize the FTA negotiations and have also agreed on a Security and Defence Partnership, bringing an end to a negotiation process that kicked off back in 2007.

What’s the India–EU Free Trade Agreement all about?

The India–EU FTA is a thorough trade agreement designed to cut tariffs, simplify market access, and enhance trade in goods, services, and investments. Together, they represent a whopping 25% of global GDP and nearly a third of global trade, making this one of the largest trade deals on the planet. With bilateral trade already surpassing $136 billion, the FTA is set to further boost exports in textiles, gems and jewellery, leather, footwear, services, and manufacturing, while also enhancing investor confidence in India.

Why is this FTA a big deal?

Negotiations for the India–EU FTA first kicked off in 2007, but progress hit a snag in 2013 due to disagreements over tariffs, services, and regulatory standards. Talks were revived in June 2022. The conclusion in 2026 finally wraps up a nearly 20-year journey, earning the title “mother of all deals” from EU leaders. This agreement also comes at a time when global trade patterns are shifting and uncertainties are rising in transatlantic relations, providing both India and the EU with a sense of strategic autonomy.

Additional Pacts Signed at the 16th Summit 

Beyond the FTA, the leaders solidified a broader strategic partnership: 

• Security and Defence Partnership: A new framework to increase interoperability and allow Indian firms to participate in the EU’s SAFE (Security Action for Europe) programme.
• Mobility Agreement: A comprehensive framework to facilitate the movement of professionals, including Indian students, researchers, and IT service providers, into the EU market.
• Towards 2030 Agenda: A joint comprehensive strategic roadmap for the next five years, focusing on clean energy, digital technology, and green hydrogen.