New Delhi [India], January 27 (ANI): Prime Minister Narendra Modi on Tuesday hailed the India-EU Free Trade Agreement, reiterating it as the 'Mother of all deals' and how it illustrates the partnership between two major economies of the world. The deal becomes significant as it links two major economies that command a quarter of the world's GDP.

PM Modi made the remarks while virtually addressing the Opening Ceremony of India Energy Week 2026.

He said, 'Yesterday, a major agreement was signed between India and the European Union, widely regarded as the 'mother of all deals.' This landmark deal presents significant opportunities for India's 1.4 billion people and for millions across the EU. Together, these regions account for 25% of global GDP and one-third of global trade. Beyond economics, the agreement also reaffirms our shared commitment to democracy and the rule of law.'

He added that the free trade agreement with the EU will complement existing agreements with the United Kingdom and members of the European Free Trade Association (EFTA).

Extending his congratulations to those associated with different sectors, the Prime Minister said the agreement would be highly beneficial for industry stakeholders. He added that the trade deal would have a positive impact on both manufacturing and services in the country.

Emphasising the broader global impact, PM Modi said the FTA would boost global confidence in India. 'This Free Trade Agreement will further strengthen global confidence in India for businesses and investors across the world,' he said, adding that India is actively working on global partnerships across all sectors.

'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 PM added.

The free trade agreement between India and the EU, first initiated in 2007, is expected to anchor a broader economic and strategic partnership as global trade dynamics shift.

On Monday, the negotiations for the 'Mother of all deals', as it has been called, concluded successfully and will be announced today during the India-EU summit.

Earlier today, India and the European Union also inked the security and defence partnership here in the national capital.

European Union Vice President Kaja Kallas said on the occasion, 'The signing of the Security and Defence Partnership is a milestone, and we can build on that. There is so much more we can work together on in the multilateral fora, as well as bilaterally, to further develop defence cooperation.'

The signing of the partnership will formally take place during the 16th India-EU Summit set to take place later today. The President of the European Council, Antonio Luis Santos da Costa, and the President of the European Commission, Ursula von der Leyen, are also on a State Visit to India and will co-chair the summit.

With the signing of the deal, India becomes the third Asian country to have such a deal with the EU after Japan and South Korea. India and EU are set to formalise the 'Mother of all deals' on Tuesday.

The two partners together represent almost one-fifth of global trade and around 25 per cent of the global population, highlighting the growing economic and strategic weight of the partnership, working to promote economic prosperity, a rules-based international order and sustainable development. Trade and investment remain central pillars of this relationship.

At the EU-India summit scheduled for Tuesday, leaders from both sides are expected to adopt a joint comprehensive strategic agenda and discuss trade in the context of the ongoing free trade agreement negotiations, which were first launched in 2007 and relaunched in 2022 and concluded on Monday.

Speaking on the upcoming deal, European Commission President Ursula von der Leyen said, 'India and Europe have made a clear choice. The choice of strategic partnership, dialogue and openness. Leveraging our complementary strengths. And building mutual resilience. We are showing a fractured world that another way is possible.

'European Council President Antonio Costa echoed that thought saying, 'India is a crucial partner for the EU. Together, we share the capacity and responsibility to protect the rules-based international order. 'In trade in goods, the EU is India's second-largest trading partner, right after China and ahead of the United States, accounting for 11.5 per cent of India's total goods trade.

As per the official data, in 2024, EU-India trade in goods was valued at over Euro 120 billion. This included Euro 71.4 billion worth of EU imports from India and Euro 48.8 billion in EU exports to India.

Over the last decade, bilateral trade in goods has doubled. During this period, EU imports from India grew by 140 per cent, while EU exports to India increased by 58 per cent, showing the steady expansion of commercial ties.

The main goods exported by the EU to India include machinery and appliances, transport equipment and chemicals. On the other hand, the EU primarily imports machinery and appliances, chemicals and fuels from India.

Trade in services has also seen strong growth. In 2024, EU-India trade in services was worth over Euro 66 billion, with more than Euro 37 billion in EU imports and around Euro 29 billion in EU exports. Over the past decade, trade in services between the two sides has more than doubled, recording a growth of 243 per cent.

Key services traded between India and the EU include telecommunications, computer and information services, other business services such as professional and management consulting, and transport services.

Foreign direct investment (FDI) further reflects the depth of the relationship. In 2024, the EU's foreign direct investments in India were valued at over Euro 132 billion, making the EU the leading investor in the country. (ANI)