‘Mother of All Deals’: Modi Hails Landmark India-EU Trade Pact as a Game Changer for Manufacturing, Services and Global Confidence
Prime Minister Narendra Modi on Tuesday described the forthcoming India–European Union free trade agreement as a historic breakthrough that will significantly boost India’s manufacturing strength, expand its services sector, and reinforce global investor confidence in the country.
Speaking virtually while inaugurating India Energy Week, Modi said the long-awaited trade pact — widely being referred to as the “Mother of All Deals” — marks a new chapter in India’s economic engagement with the world and showcases the growing synergy between two of the largest economies.
According to the Prime Minister, the agreement will serve as a powerful catalyst for domestic industries while strengthening global supply chains at a time of major shifts in international trade dynamics.
“This agreement has created massive opportunities for 1.4 billion Indians and millions across Europe.
It is a shining example of cooperation between two major global economies. Together, India and the European Union represent around 25 per cent of global GDP and nearly one-third of world trade,” Modi said.
He added that the deal would not only energise manufacturing across India but also unlock major growth in service-related sectors.
“This free trade agreement will further strengthen the confidence of every business and investor in India. It complements our recent trade agreements with the UK and Australia, and will provide greater resilience to global trade and supply chains,” he noted.
The Prime Minister highlighted that key Indian sectors such as textiles, gems and jewellery, leather, jute and other labour-intensive industries are expected to witness significant gains under the new framework.
Beyond economics, Modi underlined that the agreement also reflects the shared values of India and the European Union.
“Along with trade, this deal strengthens our collective commitment to democracy, the rule of law and transparent global cooperation,” he said.
Deal Nears Final Milestone After Years of Negotiations
After nearly two decades of intermittent negotiations, official-level talks between India and the EU have now been successfully concluded.
Both sides are set to formally announce the completion of negotiations at the India-EU Summit in New Delhi.
The agreement will undergo a legal review — known as legal scrubbing — which is expected to take four to five months.
Once completed, the deal will be signed later this year and will likely come into force in early next year following ratification by the European Parliament.
Negotiations for the trade pact first began in 2007 but stalled in 2013 due to disagreements, particularly over market access in sectors such as automobiles.
The revived talks have now resulted in consensus across 21 major chapters after restructuring and consolidating earlier provisions.
Officials have indicated that the agreement will be one of the most comprehensive trade deals India has ever signed.
Major Opportunities and Strategic Shifts
The India-EU trade pact is expected to significantly benefit India’s labour-intensive industries, including marine exports, textiles, footwear, sports goods and other manufacturing segments that employ millions.
In return, India is likely to open up certain sectors such as automobiles and alcoholic beverages — areas in which European companies have long sought greater access.
The renewed urgency behind the deal has also been shaped by changing global trade realities.
With the United States adopting aggressive tariff policies, including steep duties affecting Indian exports, and the EU itself facing potential trade pressures from Washington, both partners have been actively looking to diversify markets and strengthen economic alliances.
Another underlying factor driving the agreement is the shared concern over China’s overwhelming dominance in global manufacturing and critical technologies.
Indian industries, particularly in solar energy manufacturing, have been struggling with intense pricing pressure from Chinese firms.
Meanwhile, European nations are increasingly worried about their dependence on Chinese supply chains in key technological sectors, viewing it as a long-term strategic vulnerability.
By deepening trade and cooperation, India and the EU aim to reduce such risks while creating more balanced and resilient global production networks.
As the deal moves toward formal signing, it is being seen not just as a commercial agreement, but as a strategic partnership reshaping trade flows between Asia and Europe in a rapidly evolving global economy.
#IndiaEUTradeDeal #MotherOfAllDeals #PMModi #EconomicPartnership #GlobalTrade #ManufacturingBoost #ServicesGrowth #SupplyChainResilience #IndiaEURelations #TradeBreakthrough
