'Making history today': EU Commission President hails EU-India FTA
What's the story
The European Union (EU) and India have finalized a landmark free trade agreement, dubbed the "Mother of all Deals." European Commission President Ursula von der Leyen announced the historic milestone on the social media platform X. She said, "Europe and India are making history today. We have concluded the mother of all deals." The deal is expected to create a free trade zone for two billion people. Von der Leyen added, "This is only the beginning."
Twitter Post
European Commission President's post on deal conclusion
Europe and India are making history today.
— Ursula von der Leyen (@vonderleyen) January 27, 2026
We have concluded the mother of all deals.
We have created a free trade zone of two billion people, with both sides set to benefit.
This is only the beginning.
We will grow our strategic relationship to be even stronger. pic.twitter.com/C7L1kQQEtr
Diplomatic meeting
Indian and EU leaders meet to celebrate agreement
The announcement of the free trade agreement came after a meeting between Indian Prime Minister Narendra Modi and top EU leaders, including the President of the European Council, Antonio Costa, European Commission President, Ursula Von Der Leyen, and EU High Representative for Foreign Affairs Kaja Kallas. PM Modi hailed the India-EU Free Trade Agreement as a major step in strengthening ties between two of the world's largest economies.
Economic significance
'Strong message cooperation is best answer'
Von der Leyen highlighted that the deal "is a strong message that cooperation is the best answer to global challenges. This trade will integrate our supply chain and strengthen our joint manufacturing power." She added, "It will cut up to four billion euros in annual tariffs for exporters of all sizes, and it will create good jobs for millions of workers here in India and in Europe."
Sectoral impact
Agreement to benefit various sectors in India
The free trade agreement is expected to have a positive impact on both the manufacturing and services sectors in India. PM Modi congratulated all stakeholders associated with different sectors, saying the agreement would be highly beneficial for them. The deal makes India the third Asian country, after Japan and South Korea, to have such an agreement with the EU.