‘Biggest free trade agreement in India’s history finalised today,’ says PM Modi after India-EU summit

THE India-European free trade agreement — described by European Commission President Ursula von der Leyen as ‘the mother of all trade deals’ — has been finalised, Prime Minister Narendra Modi said on Tuesday.

The representatives from the two sides signed a political declaration to that effect with visiting President of the European Council, António Costa, and the President of the European Commission, Ursula von der Leyen, in attendance.

Union Minister Piyush Goyal represented India at the signing of the political declaration to conclude talks on the Free Trade Agreement (FTA) between India and the European Union, which will take about 6 months to be formally signed.

“Today, India has finalised the biggest Free Trade Agreement in its history. On 27 January, India signed this FTA with 27 European nations...This will boost investment, form new innovation partnerships and strengthen supply chains at the global level...This is not just a trade agreement, it is a blueprint for shared prosperity,” Prime Minister Narendra Modi said at the conclusion of the 16th India-EU Summit at Hyderabad House in the national capital.

Prime Minister Modi said the agreement will provide Indian farmers and industries with greater access to European markets.

“Yesterday was a historic moment when the European Union leaders took part in India's Republic Day celebrations for the first time. Today is another such moment, when two major democratic powers are adding a decisive chapter in their relationship,” he said during the press statements.

Speaking after Prime Minister Modi, President of the European Council, António Luís Santos da Costa, said that trade had flowed down two continents, calling India the world's fastest-growing major economy.

“Trade has flowed between our two continents for centuries. Trade is a crucial geopolitical stabiliser and the fundamental source of economic growth. Trade agreements reinforce a rules-based economic order and promote shared prosperity,” he said, adding, "That's why today's free trade agreement is of historic importance. One of the most ambitious agreements ever concluded, creating a market of 2 billion people."

European Commission President Ursula von der Leyen said India and the EU have decided to be reliable partners, after she thanked Indian leaders and heaped praise on the FTA signed. “We have delivered the mother of all deals,” she said.

We have delivered the mother of all deals.

Formal signing in 6 months

Commerce Secretary Rajesh Agrawal said Saturday that while negotiations for the India-EU trade deal have concluded successfully, a formal signing will take place after legal scrubbing, likely to take 5 to 6 months.

Here are the top quotes from the press statements today:

**Prime Minister Narendra Modi

"Today, India concluded the biggest Free Trade Agreement in its history. On 27 January, India signed this FTA with 27 European nations...This will boost investment, form new innovation partnerships and strengthen supply chains at the global level...This is not just a trade agreement, it is a blueprint for shared prosperity."

"Yesterday was a historic moment when the European Union leaders took part in India's Republic Day celebrations for the first time. Today is another such moment, when two major democratic powers are adding a decisive chapter in their relationship...."

“We are launching an ambitious and holistic strategic agenda for the next 5 years. In this complex global environment, this agenda will provide clear direction, advance our shared prosperity, accelerate innovation, strengthen defence cooperation and deepen people-to-people ties.”

“The coming together of India and the EU is a partnership for global good. We will advance trilateral projects from the Indo-Pacific to the Caribbean. Together, we will establish the IMEC corridor as an important link for global trade and sustainable development.”

“There is turmoil in the global order; in this condition, India-EU cooperation will strengthen stability in the international system. We discussed many global issues, including Ukraine. We share the opinion that global institutional reforms are very necessary today. This is the moment when we are starting a new chapter in our relationship between India and the EU."

**President of the European Commission, Ursula Von Der Leyen

“PM Modi, we did it!... We delivered the mother of all deals..."

"We are not only making our economies stronger. We are also delivering security for our people in an increasingly insecure world. Today, the world's two largest economies and democracies launched their first-ever security and defence partnership... Europe and India have a long history of cooperation in the defence industry..."

“I want to offer a special word of thanks to the people who worked so hard to make this day a reality. Starting with the European Commissioner for Trade, Maroš Šefčovič, and his counterpart, India's Commerce Minister Piyush Goyal. You have done an outstanding work. This is historic and it would not have been possible without you...”

"It brings together Indian skills, services and scale, with European technology, capital and innovation. It will create levels of growth which neither side can achieve alone. By combining our strengths, we reduce strategic dependencies at a time when trade is increasingly weaponised..."

"In our summit, we affirmed our commitment to supporting efforts towards a comprehensive, just and lasting peace in Ukraine, one that fully respects Ukraine's independence, sovereignty and territorial integrity. This is a key moment. We are supporting all efforts to reach a just and sustainable peace. Ukraine has shown its readiness, including at the cost of a difficult compromise. I know, dear Prime Minister, that we can count on you to help create conditions for peace through dialogue and diplomacy..."
President of the European Council, António Luís Santos da Costa

"We conclude today our trade negotiations. We relaunched at the latest meeting that I had the pleasure of hosting in May 2021 in my previous capacity. Our summit sends a clear message to the world. At a time when the global order is being fundamentally reshaped, the European Union and India stand together as strategic and reliable partners.”

“Today, we are taking our partnership to the next level. As the two largest democracies in the world, we are working hand in hand to deliver concrete benefits for our citizens and to shape a resilient global order that underpins peace and stability, economic growth and sustainable development..."

“India is the world's fastest-growing major economy. Trade has flowed between our two continents for centuries. Trade is a crucial geopolitical stabiliser and the fundamental source of economic growth. Trade agreements reinforce a rules-based economic order and promote shared prosperity. That's why today's free trade agreement is of historic importance. One of the most ambitious agreements ever concluded, creating a market of 2 billion people."

“In a multipolar world, the European Union and India are working together to grow spheres of shared prosperity. But prosperity does not exist without security. Strengthen our cooperation to better protect our citizens and our shared interests, working together to counter the full range of security threats we face in the Indo-Pacific, in Europe, and around the world, and to reach a new level of strategic trust between us. That is the significance of our agreement on a security and defence partnership. The first such overarching defence and security framework between India and the European Union...”