Prime Minister Narendra Modi has described the free trade agreement (FTA) between India and the European Union (EU) as one of the most significant events in the history of global trade. Speaking at the India Energy Week, PM Modi called it the “Mother of All Deals,” clarifying that this agreement is not merely about trade figures, but a symbol of trust between two major democratic powers. This deal has been finalized after a long wait of nearly 18 years and negotiations that began in 2007.
Impact on the Global Economy: This agreement is poised to be a game-changer for the global economy. According to PM Modi, India and the European Union together account for 25% of global GDP and one-third of global trade. The collaboration of these two powers will create ripples in markets worldwide. Especially at a time when US tariffs and global uncertainties have created trade barriers, this agreement will act as a protective shield for India.
Growing Strength in Refining and Exports: PM Modi also highlighted India’s growing energy capacity. Currently, India has the world’s second-largest refining capacity (260 MMTPA) and aims to reach the top spot soon. India is currently exporting petroleum products to more than 150 countries. This agreement will open new avenues for European countries to invest in the Indian energy market.
What will the general public and businesses gain? Under this deal, import duties on approximately 90% of goods will either be eliminated or significantly reduced. Indian exporters in sectors such as textiles, footwear, and agricultural products will gain direct and cheaper access to European markets. Meanwhile, Indian consumers will have access to European technology and products at lower prices. This agreement will not only strengthen economic ties but also elevate the shared commitment to democracy and the rule of law to new heights.
