India-EU Sign 'Mother of All Deals': PM Modi Calls it Landmark Trade Pact

Prime Minister Narendra Modi termed the India-EU free trade agreement signed on January 26, 2026 as the "mother of all deals" that will reshape trade between two of the world's largest economies. 

Historic Trade Agreement Signed 

The India-EU free trade agreement, representing around 25% of global GDP and nearly 1/3 of global trade, was signed after negotiations resumed in 2022. Modi stated the pact would deliver sweeping economic gains for India's 1.4 billion population and EU's millions of consumers.  

The agreement covers trade in goods and services, investment protection, sustainability standards, digital trade and regulatory cooperation. 

Key Sector Benefits 

The Prime Minister highlighted that key Indian sectors including textiles, gems and jewellery, and leather goods would receive significant boosts from the agreement.  

The pact complements India's recently concluded trade agreement with the UK and aligns with New Delhi's push to position India as a global production hub. 

Global Investment Impact 

Modi emphasised that the FTA would strengthen global confidence in India for businesses and investors worldwide.  

Speaking at India Energy Week 2026, he noted immense investment opportunities across the energy value chain, with India targeting $100 billion investment in the oil and gas sector by 2030. India currently ranks among the world's top 5 exporters of petroleum products. 

Read More: India and EU Poised to Strengthen Strategic Partnership Amid Free Trade Talks! 

Conclusion 

The India-EU free trade agreement, termed the "mother of all deals" by Modi, covers 25% of global GDP and 1/3 of world trade. The pact aims to boost key Indian sectors while strengthening supply-chain resilience and reducing dependence on other markets. 

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