India-EU’s Mother Of All Deals: Why The FTA Is A Blueprint For Inclusive Global Growth

Last Updated:January 27, 2026, 20:01 IST

India-EU FTA establishes a powerhouse economic corridor, integrating India with a $20-trillion market across 27 EU nations

Prime Minister Narendra Modi interacts with President of the European Commission Ursula von der Leyen during the 77th Republic Day Parade, at Kartavya Path in New Delhi. (PMO via PTI)

Prime Minister Narendra Modi on Tuesday said the India-European Union (EU) free trade agreement (FTA) is a blueprint for shared prosperity for the global good and will provide stability at a time when the world order is witnessing turmoil.

The FTA establishes a powerhouse economic corridor, integrating India with a $20-trillion market across 27 EU nations. By clearing 9,425 tariff lines for Indian exports, representing nearly 25% of global GDP and a market of 2 billion people, this “mother of all deals" creates a seamless gateway for professionals, farmers, MSMEs, and labour-intensive sectors, delivering benefits across the Indian economy.

By opening access to over 144 EU service subsectors and unlocking 102 Indian sectors for EU investment, the agreement creates unprecedented opportunities for professionals, farmers, MSMEs, and high-growth industries. From the tech hubs of Bengaluru to the leather clusters of Kanpur, the agreement provides an unprecedented competitive edge against global rivals.

A New Era for Indian Service Professionals in the EU

India’s service sector, the engine of its economy, now gains preferential access to the EU’s 144 subsectors. This framework moves beyond simple trade to prioritize the movement of people and expertise. The FTA significantly strengthens and opens new opportunities for professionals in India’s services including IT services, education, financial services, and tourism.

At the same time, EU access to 102 Indian service subsectors brings in high-end technology, innovation, and investment, creating a virtuous cycle of growth. This balanced exchange deepens collaboration, raises service standards, and reinforces India’s position as a global services powerhouse built on talent, trust, and scale.

ALSO READ | BMW, Lamborghini, Porsche To Cancer Medicines: India-EU Trade Deal Will Make These Items Cheaper

Services & Professional Mobility: The “Seamless Access" Framework

The India-EU FTA establishes a forward-looking mobility regime, positioning Indian professionals at the heart of Europe’s services economy. Contractual Service Suppliers gain assured market access across 37 sectors, including IT, R&D, education, and professional services.

Independent Professionals receive dedicated commitments in 17 high-skill sectors, reflecting India’s core expertise. For the first time, work and mobility rights are extended to the families of Intra-Corporate Transferees, making European assignments more sustainable for Indian talent.

Social Security Cooperation commitments pave the way for bilateral Social Security Agreements over a five-year horizon, reducing double contributions and improving long-term security for Indian workers abroad.

Youth Mobility: Empowering India’s Talent Pipeline

Recognizing that the youth are the drivers of future services exports, the FTA introduces a transformative framework for young Indian professionals. Indian young professionals graduating from EU institutions now have a guaranteed window of at least 9 to 12 months to seek employment providing a vital bridge between education and a global career.

By integrating Indian talent into the EU workforce early, the pact ensures a long-term surge in knowledge-based services exports back to India.

Farmers: Strengthening the Rural Heartland

India’s farmers and processed food sectors are poised for a transformative boost under the India–EU FTA. It provides complete protection for sensitive sectors such as dairy, poultry, and cereals, ensuring rural livelihoods remain secure; the FTA ensures a progressive export roadmap for India’s farmers.

Tea, coffee, spices, and fresh produce like fruits and vegetables now enjoy a “Level Playing Field" with zero-duty access. Processed foods will gain enhanced competitiveness and new export horizons will unlock for grapes, cucumbers, gherkins, ghee, dried onions, and sweetcorn.

MSMEs & Manufacturers: Opening Global Doors for India’s Entrepreneurs

The India-EU FTA delivers a decisive boost to India’s MSMEs and export-driven manufacturing sectors. Designed to uplift labour-intensive and export-driven industries, the agreement removes long-standing trade barriers and delivers a direct growth catalyst for the MSME ecosystem.

For a leather manufacturer in Agra or Kanpur, duties falling from 17% to zero translate into immediate access to a $100 billion EU market. For gems and jewellery exporters, tariffs dropping from 4% to zero and 100% preferential access mean that “Made in India" craftsmanship can now compete fairly across all 27 EU member states.

Beyond market access, the agreement includes financial and technical frameworks to help Indian MSMEs transition to green manufacturing and meet the EU’s Carbon Border Adjustment Mechanism (CBAM) norms.

Traditional Practitioners: Taking India’s Heritage to Global Markets

For India’s traditional practitioners, artisans, weavers, craftspeople, and home-grown textile producers, the India–EU FTA opens a powerful new chapter. By boosting the production and exports of man-made fibre apparel, yarn, cotton yarn, and home textiles, the agreement connects centuries-old skills with one of the world’s most premium consumer markets.

Reduced trade barriers allow Indian textiles and apparel to compete on quality and cost, strengthening India’s position in labour-intensive sectors. The agreement is expected to generate massive employment opportunities, particularly for women, rural artisans, and skilled workers embedded in traditional value chains.

ALSO READ | How India-EU FTA Will Help States: Rs 6.4-Lakh-Crore Export Boost, Bigger Market For Products

Healthcare & Medical Devices: The $572B Prescription

For India’s doctors, medical device innovators, healthcare workers, and manufacturers, the India–EU FTA unlocks a powerful prescription for global growth. The agreement slashes tariffs on “Made in India" medical devices, making Indian technology globally competitive.

For a medical professional trained in India, the FTA opens new pathways to practice in the EU through recognition of Indian credentials, enabling the movement of skills and expertise across borders and strengthening a shared healthcare ecosystem.

Manufacturers and innovators operating in Maharashtra, Gujarat, Andhra Pradesh, and Telangana stand to benefit significantly as these hubs emerge as key suppliers to the $572 billion EU healthcare market. By improving India’s cost efficiency and technological standing relative to major global players such as the USA, China, and Japan, the FTA positions Indian medical devices and services as preferred global solutions.

News india India-EU’s Mother Of All Deals: Why The FTA Is A Blueprint For Inclusive Global Growth

Read More