The India-EU Summit 2026 Live: Prime Minister Narendra Modi said the relations between the two countries will stabilize the world order in the face of the ongoing conflict in global environment. He said the comments after the two sides had agreed on a major FTA.
Author: Akshita Jain | EQMint | Political News
It is the “mother of all deals”, the deal that was reached after decades of negotiations, which has been described as having a market size of about 2 billion people.
Trade Minister Piyush Goyal and European Commissioner for Trade and Economic Security Maroš Šefčovič signed the joint announcement on the conclusion of the negotiations on the FTA on Tuesday (January 27, 2026), alongside Prime Minister Narendra Modi, President of the European Commission Ursula von der Leyen and President of the European Council António Costa.
“We have delivered the mother of all deals,” Ms. von der Leyen said in her statement. “We are building a market of 2 billion people. This is a tale of two giants – the world’s second-largest economy and fourth-largest economy. Two giants who choose partnership in a win-win fashion. “There is a strong message that cooperation is the best answer to global challenges.”
The India-EU Summit 2026
On Tuesday, India and the EU announced they had signed a historic trade agreement. The EU later announced that it would save €4 billion in tax hikes every year because India has agreed to reduce, and in some cases eliminate, tariffs on almost 97% of imports from Europe.
Prime Minister Narendra Modi described trade relations between India and the EU as the global ‘double engine of growth’ after the trade deal, calling on the business leaders to take the next step in promoting trade links between India and Europe. ‘The ball is in your court,’ Modi said. He said India and the EU will restore order to the world in this turbulent global climate.
Modi had earlier praised the trade agreement and said it would “drive trade, investment and innovation while strengthening our strategic relationship.” It reflects our collective desire to create a stable, prosperous and future-ready economic relationship,” he wrote in a post on X.
Modi also praised the ‘mother of all deals’ and said it was a “perfect” example of collaboration between two major economies on the global stage. He then had limited, delegation-level conversations with European Commission President Ursula von der Leyen and European Council President Antonio Costa on the sidelines of the 16th India-European Union Summit today.
Commerce Secretary Rajesh Agrawal had earlier reported that negotiations between India and the EU had been successful and that they were set to announce the FTA on Tuesday, January 27.
EU’s Ursula von der Leyen praised the deal and declared that history has been made. “We have established a free trade area of 2 billion people, to the benefit. However, this is just the beginning. We will further strengthen our strategic relationship,” she stated on X, after the announcement of the deal.
At the moment, the trade agreement between Europe and India is one of the few that both have in their sleeves in the face of the Trump administration targeting them.
What are the Key Developments?
PM Modi says deal to boost manufacturing: After India and the EU signed a trade pact, India PM Modi said it would undoubtedly give a big boost to the manufacturing and services sectors. He further informed that the deal stood for “around 25 per cent of global GDP and one-third of global trade”.
What the EU chief said on R-Day: Ursula von der Leyen, the President of the European Commission and one of the chief guests of the big Republic Day parade in Delhi on 26 January, posted a short video from the ceremony on X along with the text: “When India prospers, the world becomes more stable, prosperous and secure, and we all get to enjoy the benefits”.
When is the deal going to become effective? Although the two parties, India and the EU, have completed the negotiation and signed the deal, the commerce secretary has informed that the trade agreement will be implemented in the next year. “It will take 5-6 months to be done legally; after that, the formal signing will be conducted,” Agrawal was cited as saying.
Trump aide reacts to trade deal: India and the EU reached a trade deal, while trade talks between India and the US are still underway. US treasury secretary Scott Bessent lashed out at the development in a news interview on Sunday. He said that European countries are “initiating a war against themselves” by purchasing refined Russian oil products from India.
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Resource Link : NDTV
