New Delhi [India], January 27 (ANI): Prime Minister Narendra Modi on Tuesday hailed the recently signed India-European Union Free Trade Agreement (FTA) as a milestone that empowers the shared commitment of both sides towards democracy and the rule of law, while complementing India's existing agreements with the United Kingdom and the European Free Trade Association (EFTA).

'Just yesterday, a massive agreement was signed between India and the European Union. People around the world are discussing it as the 'Mother of All Deals'. This agreement brings a huge opportunity for India's 1.4 billion people and the millions in European countries. This agreement is a brilliant example of coordination between two of the world's largest economies,' PM Modi said during his address ahead of India Energy Week.

The Prime Minister noted that the India-EU FTA represents nearly 25 per cent of global GDP and almost one-third of global trade, emphasising its strategic and economic significance.

'This agreement represents nearly 25 per cent of global GDP and almost one-third of global trade. This agreement empowers our shared commitment towards democracy and the rule of law. This Free Trade Agreement with the European Union will also complement Britain and EFTA's agreements... I congratulate the people of the nation for this,' the Prime Minister said.

'Manufacturing will get a huge boost from this trade deal with the EU, and the services sector will also expand. The Free Trade Agreement will boost the confidence of every investor and businessman to invest in India,' the PM added.

The free trade agreement between India and the EU, first initiated in 2007, is expected to anchor a broader economic and strategic partnership as global trade dynamics shift.

On Monday, the negotiations for the 'Mother of all deals', as it has been called, concluded successfully and will be announced today during the India-EU summit.

The President of the European Council, Antonio Costa, and the President of the European Commission, Ursula von der Leyen, will represent the EU at the 16th EU-India summit in New Delhi. Prime Minister Narendra Modi will host the summit.

At the summit, leaders are expected to adopt a joint EU-India comprehensive strategic agenda that aims to increase strategic cooperation between both sides across four areas, reinforced by enablers across the following pillars: prosperity and sustainability, technology and innovation, security and defence, and connectivity and global issues.

Leaders will also discuss trade in the context of the now-concluded free-trade agreement that started in 2007 (and was relaunched in 2022). This agreement would boost bilateral trade and investment ties and drive shared prosperity.

The India-EFTA Trade and Economic Partnership Agreement (TEPA), signed in March 2024 and entered into force on October 1, 2025, involves Iceland, Liechtenstein, Norway, and Switzerland.

Meanwhile, the landmark India-UK Free Trade Agreement was signed in July 2025, in the presence of Prime Minister Narendra Modi and his UK counterpart, Keir Starmer, providing greater access to goods and services between the two countries. (ANI)