After Huddle With PM Modi, EU Chief Says India-EU's 'Mother Of All Deals' Will Be Signed This Year

Last Updated:June 17, 2026, 19:20 IST

Ursula von der Leyen says India and EU will sign their major Free Trade Agreement by end 2026, aiming to boost trade, cut tariffs, and deepen security and connectivity ties.

India and the European Union will sign their long-awaited Free Trade Agreement (FTA) by the end of 2026, European Commission President Ursula von der Leyen announced after holding talks with Prime Minister Narendra Modi on the sidelines of the G7 Summit in France.

The meeting, also attended by European Council President Antonio Costa, focused on accelerating economic cooperation, strengthening supply chains and expanding security and defence ties amid growing geopolitical uncertainty.

“Since we have concluded the mother of all trade deals, we have been moving fast to deliver on our commitments. We will sign the Free Trade Agreement by the end of the year and accelerate work on an investment agreement," von der Leyen said.

‘Mother Of All Trade Deals’

India and the EU concluded negotiations for the ambitious trade pact earlier this year following a summit in New Delhi. The agreement is widely regarded as one of the most significant trade deals negotiated by either side.

Once implemented, the FTA will cover nearly a quarter of the global economy and is expected to dramatically boost trade and investment flows between India and the 27-member European bloc.

According to officials, the agreement will eliminate tariffs on 99 per cent of Indian exports to the EU, while reducing duties on more than 97 per cent of European exports entering India.

The EU estimates that the deal could save European exporters up to €4 billion annually in tariffs.

Modi, EU Leaders Push For Early Implementation

The Ministry of External Affairs (MEA) said both sides stressed the need for the swift signing and implementation of the agreement, describing it as a historic milestone in bilateral ties.

“The leaders emphasised the recent conclusion of negotiations for the India-EU free trade agreement as a historic achievement," the MEA said.

According to the Indian government, the pact will unlock major opportunities for trade and investment while helping diversify global supply chains at a time of heightened geopolitical volatility.

Prime Minister Modi said the discussions focused on strengthening economic ties and expanding cooperation in the years ahead.

“Our growing cooperation can play an important role in strengthening peace, stability and prosperity in today’s global environment," he said.

Defence, Connectivity Also On Agenda

Beyond trade, the leaders agreed to deepen cooperation in security and defence.

Von der Leyen also highlighted plans to advance the India-Middle East-Europe Economic Corridor (IMEC), a major connectivity initiative aimed at improving trade routes linking India, the Gulf region and Europe.

“We will also step up security and defence cooperation and join forces for better connectivity by advancing IMEC," she said.

EU Remains India’s Largest Trading Partner

The European Union is currently India’s largest trading partner in goods.

During the 2024-25 financial year, bilateral trade in goods between India and the EU stood at approximately USD 136 billion. India’s exports to the bloc were valued at around USD 76 billion, while imports from the EU totalled about USD 60 billion.

The leaders also reviewed progress on the India-EU Comprehensive Strategic Agenda adopted earlier this year and reaffirmed their commitment to building a stronger strategic partnership.

West Asia Situation Discussed

The talks also covered regional and global developments, including the evolving situation in West Asia.

According to the MEA, the leaders welcomed recent diplomatic progress, including the peace initiative between the United States and Iran.

The two sides reiterated their commitment to a “resilient multipolar global order" focused on peace, stability, prosperity and sustainable development.

The expected signing of the India-EU FTA later this year would mark one of the biggest economic milestones in India’s recent trade diplomacy and significantly deepen its engagement with Europe.

News world After Huddle With PM Modi, EU Chief Says India-EU's 'Mother Of All Deals' Will Be Signed This Year

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