India EU FTA: According to PM Modi, this FTA with 27 countries will provide easy access to the European market to farmers, small industries, and MSMEs, boost manufacturing and accelerate investment between the two sides, which will provide widespread benefits to all sections of society.

India EU Free Trade Agreement: Prime Minister Narendra Modi described the historic free trade agreement signed between India and the European Union on Tuesday as the largest FTA ever. He said that the current trade between India and the EU is approximately $180 billion, and more than 800,000 Indians are working in Europe. This agreement will open new opportunities for cooperation in areas such as strategic technology, clean energy, manufacturing, and investment.

According to PM Modi, this FTA with 27 countries will provide easy access to the European market to farmers, small industries, and MSMEs, boost manufacturing, and accelerate investment between the two sides, which will provide widespread benefits to all sections of society.

The global supply chain will be strengthened.

At the joint India-EU press conference, Prime Minister Narendra Modi stated that this agreement is not just a trade agreement, but a major step toward strengthening global supply chains and creating a new framework for mobility. He added that it will open up new opportunities for Indian students and workers and deepen cooperation in science and technology.

PM Modi emphasized that defense and security cooperation is the foundation of any partnership, which this agreement formalizes. This will strengthen counter-terrorism, cybersecurity, and cyber cooperation, and create new co-production opportunities for Indian defense companies. He explained that India and the EU are launching a new, ambitious agenda for the next five years that will set a clear direction, accelerate innovation, strengthen security cooperation, and further strengthen people-to-people ties.

The EU is a major trading partner.

The European Union is a very important trading partner for India, accounting for approximately 17 percent of India's total trade. Total trade between India and the EU was approximately $136.53 billion in fiscal year 2024-25. Of this, India imported goods worth $60.68 billion from the EU and exported goods worth $75.85 billion to the EU.

This resulted in India achieving a trade surplus of approximately $15.17 billion with the European Union. In addition to goods trade, the two countries also have a strong partnership in the services sector. India-EU services trade reached $83.10 billion in 2024, with sectors such as IT, business services, and telecommunications being the major contributors.

Why is FTA necessary?

The European Union is a very important trading partner for India, accounting for approximately 17 percent of India's total trade. Total trade between India and the EU was approximately $136.53 billion in fiscal year 2024-25. Of this, India imported goods worth $60.68 billion from the EU and exported goods worth $75.85 billion to the EU.

This resulted in India achieving a trade surplus of approximately $15.17 billion with the European Union. In addition to goods trade, the two countries also have a strong partnership in the services sector. India-EU services trade reached $83.10 billion in 2024, with sectors such as IT, business services, and telecommunications being the major contributors.