Sigma Live

‘Locked In’ Free Trade Agreement Between EU and India

Published January 27, 2026, 07:11
‘Locked In’ Free Trade Agreement Between EU and India

India and the European Union today formalized a broad free trade agreement, after more than 20 years of negotiations. Indian Prime Minister Narendra Modi described the agreement as the 'mother of all deals', expressing confidence that it will bring 'numerous opportunities' for both sides. The agreement is expected to protect both parties from Chinese competition and the impact of the tariff war with the United States. It covers approximately 25% of global GDP and one-third of global trade. India, which is expected to become the fourth largest economy in the world this year, sees Europe as an essential source of technology and investment. The EU, for its part, expects to benefit from increased access to the Indian market and double its exports. The agreement marks a significant moment in trade relations between India and the EU and is expected to strengthen economic cooperation and development on both sides.