Kamal Ghorui
NEW DELHI: Prime Minister Narendra Modi announced the conclusion of India-EU free trade agreement and hailed it as “milestone” that would open up new “pathways for growth, investment and strategic cooperation.”“Today is a day that will be remembered forever, marked indelibly in our shared history. European Council President António Costa and European Commission President Ursula von der Leyen and I are delighted to announce the conclusion of the historic India-EU Free Trade Agreement,” PM Modi said in a post on X on Tuesday.
This is a milestone in our relations which will: Strengthen our economic ties, create jobs for our youth, opportunities for our businesses, foster shared prosperity, build stronger global supply chains,” he added.The pact is expected to be implemented next year.PM Modi further said that the deal would “drive trade, investment and innovation.”“This agreement will drive trade, investment and innovation while strengthening our strategic relationship. It reflects our shared resolve to shape a stable, prosperous and future-ready economic relationship,” he said.This comes as India faces 50% tariffs from US amid its continued purchase of Russian oil.EU president Ursula von der Leyen said that the deal had created a “free trade zone of two billion people”, adding that it would benefit both the sides.“Europe and India are making history today. 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,” she said.The proposed India–EU trade deal brings together two economic heavyweights — India, the world’s fourth-largest economy, and the European Union, the second-largest — collectively accounting for nearly 25 per cent of global GDP and one-third of global trade. A key pillar of the agreement is preferential market access, with over 99 per cent of Indian exports expected to enter the EU on favourable terms, unlocking significant growth potential. The deal is poised to open new avenues for micro, small and medium enterprises, while generating employment for women, artisans, youth and professionals. Labour-intensive sectors are set to benefit the most, with exports worth an estimated $33 billion in textiles, leather, marine products, and gems and jewellery likely to see a major boost under the free trade agreement.
