UPDATE - India, EU agree on landmark free trade deal

CHANGES IN HEADLINE, DECK, LEDE; UPDATES WITH STATEMENTS FROM EU SIDE

By Riyaz ul Khaliq and Berk Kutay Gokmen

ISTANBUL (AA) - India and the EU on Tuesday signed a document on the conclusion of negotiations for a landmark free trade agreement (FTA) being dubbed as "the mother of all deals" that will slash tariffs on goods including automobiles, wines, textiles and footwear.

The signing took place after Indian Prime Minister Narendra Modi's summit-level talks with EU Commision chief Ursula von der Leyen and EU Council President Antonio Costa in New Delhi.

The two sides also inked a security and defense partnership agreement, as well as a pact on a “comprehensive” framework for mobility.

“India today inked its biggest free trade deal with the 27-nation European Union,” Modi said in his remarks to the media in New Delhi. He said the agreement will "drive trade, investment and innovation" while strengthening the bilateral "strategic relationship."

Costa, for his part, said: “Today is a historic moment. We are opening a new chapter in our relations – on trade, on security, on people-to-people ties.”

“Trade is a crucial geopolitical stabilizer. And a fundamental source of economic growth. Trade agreements reinforce rules-based economic order and promote shared prosperity,” he said.

“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,” he added.

With the deal, Von der Leyen said, the two sides "have created a free trade zone of two billion people, with both sides set to benefit."

- 'Historic deal'

According to a joint statement released after the EU-India summit, the two sides hailed the “successful conclusion of negotiations of the landmark India-EU Free Trade Agreement.”

“This historic deal is a milestone in the India-EU Strategic Partnership that will significantly enhance bilateral trade and investment ties, drive shared prosperity, strengthen resilient and diversified supply chains, and support sustainable and inclusive growth,” the statement added.

The readout said the two sides also signed the India-EU Security and Defense Partnership, the first such overarching defense and security framework between the two sides “that will deepen ties in the domains of maritime security, defense industry and technology, cyber and hybrid threats, space, and counter‑terrorism among others.”

Indian Commerce Secretary Rajesh Agrawal said the FTA is expected to be signed later this year, and may come into force early next year.

New Delhi and Brussels had been engaged in FTA talks for some 20 years.

According to the Indian government, the EU remains India’s largest trading partner for goods, with bilateral trade volume reaching approximately $136 billion in 2024-25.