India–EU Historic FTA Explained | International Relations | Current Update | Drishti BPSC & JPSC

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India and the European Union have exchanged a historic Free Trade Agreement (FTA) at the 16th India-EU Summit in New Delhi, marking a major milestone in global economic diplomacy and deepening the partnership between the world’s largest democracies. The agreement was formally exchanged by Prime Minister Narendra Modi, President of the European Council António Costa, and President of the European Commission Ursula von der Leyen after extensive negotiations, and has been described by leaders as the “mother of all deals” due to its far-reaching impact on trade and cooperation.
This landmark pact not only aims to significantly reduce tariffs and expand market access across a wide range of goods and services, but also sets the foundation for broader cooperation in areas such as security, defence, mobility, disaster risk management and green hydrogen, strengthening ties beyond mere commerce. Leaders highlighted that the agreement will benefit farmers, MSMEs and workers in both regions, boost investment, foster innovation partnerships and enhance supply chains globally, as India-EU relations reach new heights.
The India-EU FTA is expected to create vast opportunities for businesses and deepen economic engagement between two major global markets, accounting for a significant share of world GDP, and signifies a strategic collaboration at a time of evolving global economic challenges.



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