India,EU sign 'Big Agreement’ covering 25% of global GDP:PM Modi

India and the European Union on Tuesday announced the conclusion of a landmark agreement described by Prime Minister Narendra Modi as the “mother of all deals,” marking a major milestone in bilateral ties between two of the world’s largest economies. The agreement was unveiled at the 16th India-EU Summit, co-chaired by PM Modi, President of the European Council Antonio Luís Santos da Costa, and President of the European Commission Ursula von der Leyen.
Addressing the opening ceremony of India Energy Week 2026, PM Modi said a “big agreement” had been signed between India and the EU, calling it a defining example of cooperation between major global economies. “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 one-third of global trade,” he said.
The deal marks the successful conclusion of long-drawn negotiations between New Delhi and Brussels and is expected to significantly deepen economic, trade, and strategic cooperation. Together, India and the EU account for nearly one-fifth of global trade and about 25 per cent of the world’s population, underlining the growing weight of the partnership in the global economic order.Officials said the agreement reflects the shared commitment of India and the EU to strengthen supply chains, boost trade and investment flows, and promote sustainable and inclusive growth. It is also seen as a response to ongoing global economic uncertainties, with both sides seeking to reinforce rules-based trade and long-term economic stability.

#WATCH | Prime Minister Narendra Modi says, "...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..."

Source: DD) pic.twitter.com/aBwnRpVZrR

— ANI (@ANI) January 27, 2026

At the summit, leaders from both sides were also expected to adopt a joint comprehensive strategic agenda, setting the direction for cooperation across a wide range of sectors, including trade, clean energy, digital technologies, climate action, and geopolitical coordination.Trade discussions featured prominently at the summit, particularly in the context of the India-EU free trade agreement (FTA) negotiations. The FTA talks were first launched in 2007, stalled for several years, and then relaunched in 2022. After multiple rounds of negotiations, the talks were concluded on Monday, paving the way for the announcement at the summit.The conclusion of the agreement is expected to unlock new market access opportunities, reduce trade barriers, and encourage greater collaboration between businesses in India and Europe. Analysts see the deal as a strategic boost for both sides at a time when global trade patterns are being reshaped by geopolitical tensions and supply chain realignments.