Prime Minister Narendra Modi with European Commission President Ursula von der Leyen chairing the India-EU Business Forum in New Delhi on January 27, 2026. Photo: @MEAIndia X/ANI Photo
India has “concluded” a “historic” free trade agreement (FTA) with the European Union, Prime Minister Narendra Modi said on Tuesday (Jan 27, 2026), marking the end of negotiations that began nearly two decades ago and were renewed in 2022.
In a speech at the end of the meeting at the level of delegations with visiting EU representatives – President of the European Council Antonio Luis Santos da Costa and President of the European Commission Ursula Von der Leyen – Mr. Modi said that in addition to an “ambitious free trade agreement”, India is also entering into a new security and defense partnership and a mobility system that would allow safe and legal movement of Indians to the EU region.
“Today, India has concluded the largest free trade agreement in its history,” Prime Minister Modi said as he announced the conclusion of negotiations on the deal. The two sides began discussions on a trade deal in 2007, but suspended talks in 2013, with talks resuming in 2022 as India and the EU began reorienting policies in a post-pandemic scenario. The Prime Minister presented the agreement as a boost to investment between the European Union and India, which will promote “innovative partnerships and strengthen supply chains at a global level”. European Commission President Von der Leyen said the free trade deal “will reduce annual tariffs for exporters by up to €4 billion”. “It combines Indian skills, services and scale with European technology, capital and innovation,” Ms Von der Leyen said.
Union Home Minister Amit Shah welcomed the India-EU free trade agreement, saying the deal “secures related sectors” while “opening up a whole new world of opportunities for textiles, apparel, leather footwear, marine products, gems, jewellery, handicrafts, engineering goods, medical instruments and equipment, plastics and automobiles”.
Referring to global uncertainties, Prime Minister Modi said the two sides discussed the conflict in Ukraine, West Asia and the Indo-Pacific theater and said, “In this context, the partnership between India and the European Union will enhance stability within the international system.”
A joint statement issued after the meeting said the two sides would “continue to support efforts to achieve a comprehensive, just and lasting peace in Ukraine through dialogue and diplomacy based on the principles of the UN Charter and international law, including independence, sovereignty and territorial integrity”. In addition, the Joint Statement called for “unhindered humanitarian access” for victims of the Israeli-Palestinian conflict in the Gaza Strip and called for the implementation of UN Security Council Resolution 2803 of 17 November 2025, which welcomes a “Peace Committee” for Gaza. The document reiterated the call to “realize a two-state solution through dialogue and diplomacy” to the Israeli-Palestinian conflict.
At the end of the bilateral consultations, the two sides exchanged thirteen documents which included the India-EU Free Trade Agreement, the establishment of the Green Hydrogen Working Group, the Mobility Agreement and the “Security and Defense Partnership”. “This will help us work more closely together on counter-terrorism, maritime security and cyber security,” Mr Modi said as he developed the India-EU security and defense partnership. The joint statement elaborated on the security and defense partnership, saying the new document would deepen ties in areas such as “maritime security, defense industry and technology, cyber and hybrid threats, space and counter-terrorism, among others.”
Both sides welcomed the start of talks on an “Information Security Agreement” to facilitate the exchange of classified information. Briefing the media on the discussion, Foreign Minister Vikram Misri said that India already has defense and security partnerships with “several individual EU member states” but that the Security and Defense Framework Agreement “will allow Indian defense companies to benefit from the opportunities arising from the very important EU defense initiatives that are underway”. President Von der Leyen described the Defense and Security Framework as a “landmark and platform based on trust”. The joint statement refers to the Security and Defense Partnership as the “first such overarching” defense and security framework.
The Prime Minister and visiting EU leaders welcomed the conclusion of a Memorandum of Understanding on a comprehensive framework for cooperation in the field of mobility. Ms Von der Leyen announced the launch of the EU Office’s first legal gateway, which will act as a “central hub” to assist in the movement of Indian workers to EU member states. “It will be a comprehensive hub to support Indian talent moving to Europe in full compliance with the needs and policies of EU member states. This is good for our economies. It is good for the friendship between our people,” she said.
Published – 27 Jan 2026 22:36 IST
