India–EU FTA Marks New Era in Strategic Partnership: PM Modi

India and the European Union have ushered in a landmark phase in their bilateral ties with the conclusion of the largest Free Trade Agreement (FTA) ever signed by India, alongside the launch of a comprehensive Security and Defence Partnership. The twin announcements signal a major deepening of strategic, economic, and people-centric cooperation between the two sides.

Prime Minister Narendra Modi described the development as the beginning of a “new era” in India–EU relations while addressing a joint press statement with European Council President António Costa and European Commission President Ursula von der Leyen. The announcement followed the 16th India–EU Summit, held shortly after EU leaders participated as Chief Guests at India’s Republic Day celebrations—an unprecedented first.

Highlighting the growing momentum in ties, PM Modi noted that bilateral trade has reached €180 billion, while more than eight lakh Indians live and work across EU member states, making significant contributions to European economies. He said shared democratic values, economic complementarity, and strong people-to-people links form the foundation of the partnership.

Calling the FTA a “blueprint for shared prosperity,” the Prime Minister said it would improve market access for Indian farmers, MSMEs, manufacturers, and service providers across all 27 EU countries. The agreement is expected to boost investment flows, strengthen global supply chains, promote innovation, and generate new opportunities in manufacturing and services.

Beyond trade, both sides agreed on a new mobility framework to expand opportunities for Indian students, professionals, and workers in Europe, while further strengthening long-standing cooperation in science and technology.

Security cooperation emerged as a key pillar of the Summit, with the new India–EU Security and Defence Partnership enhancing collaboration in counter-terrorism, maritime security, cyber security, and defence co-development and co-production. The leaders also reaffirmed their commitment to a rules-based international order, particularly in the Indo-Pacific.

The Summit concluded with the adoption of a five-year strategic agenda and a shared commitment to global cooperation, including trilateral projects, sustainable development initiatives, and reform of global institutions.