'India-EU FTA represents 25% of global GDP and 1/3rd of global trade': PM Modi says 'mother of all deals' will boost manufacturing sector

Prime Minister Narendra Modi announced the long-awaited free trade agreement between India and the European Union (EU) on Tuesday.

The India-EU FTA

He said that this has been called the "mother of all deals" as it will create major opportunities for the Indian and European people. 

PM Modi’s statement comes as both countries are set to formally announce a comprehensive FTA at the joint EU-India summit later today.

The Indian Prime Minister will host European Commission President Ursula von der Leyen and European Council President Antonio Costa, with both countries also likely to finalise a strategic defence partnership and a mobility framework. 

"Yesterday, a big agreement was signed between the European Union and India. People are calling this the mother of all deals. This agreement will bring major opportunities for the public in India and Europe. This is a perfect example of a partnership between two major economies of the world...This agreement represents 25 per cent of the global GDP and 1/3rd of global trade," PM Modi said. 

He added that the manufacturing and services sectors will get a major boost from the trade deal with the EU. 

"Manufacturing will get a huge boost from this trade deal with the EU, and the services sector will also expand. The Free Trade Agreement will boost the confidence of every investor and businessman to invest in India."

The Prime Minister noted that the agreement empowers the shared commitment of both countries towards democracy and the rule of law. 

"This Free Trade Agreement with the European Union will also complement Britain and EFTA's agreements...I congratulate the people of the nation for this."

Earlier, Commerce Secretary Rajesh Agrawal disclosed that the negotiations had been completed. "Negotiations have been successfully concluded. The deal has been finalised," Agrawal was quoted as saying by news agency PTI. 

He added that the pact was balanced and forward-looking for the country, remarking that the agreement would help integrate India more closely with the European economy. He mentioned that the pact is expected to be signed later this year and could take effect early next year. 

The FTA will offer duty-free or preferential access for Indian exports in labour-intensive sectors such as textiles, chemicals, gems and jewellery, electrical machinery, leather and footwear. 

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