In a landmark announcement that marks a significant milestone in international economic relations, Prime Minister Narendra Modi on Tuesday revealed the signing of the India-European Union Free Trade Agreement (FTA). Addressing the Indian Energy Week virtually, the Prime Minister described this development as a monumental achievement that will reshape global trade dynamics.
A Historic Economic Partnership
Prime Minister Modi congratulated all stakeholders on the EU-India trade deal, stating, "I am informing you about a big development … a significant agreement was signed between India and Europe yesterday (Monday)." The Prime Minister emphasized that this agreement is being widely discussed as the "mother of all deals" due to its unprecedented scale and potential impact.
"This is an excellent example of coordination between two economies of the world. This agreement represents 25 per cent of the global GDP and one third of the global trade," Modi declared during his virtual address. The FTA is expected to create substantial opportunities for India's 140 crore citizens and millions of Europeans, fostering economic growth and bilateral cooperation across multiple sectors.
Strategic Significance and Upcoming Summit
The announcement comes as Prime Minister Modi prepares to host the 16th EU-India summit in New Delhi. The visiting delegation will be led by European Council President António Costa and European Commission President Ursula von der Leyen, who will represent the European Union at this crucial diplomatic gathering.
According to a statement from the European Council, the summit will provide an important platform to build upon the existing EU-India strategic partnership. The discussions are expected to strengthen collaboration across key policy areas including:
- Trade and economic cooperation
- Security and defence partnerships
- Clean energy transition initiatives
- People-to-people cooperation programs
Evolution of India-EU Relations
The India-EU partnership has evolved significantly over several decades, beginning with basic diplomatic engagements and expanding into a comprehensive strategic alliance. According to government statements, this multifaceted relationship now encompasses:
- Political dialogue and diplomatic coordination
- Economic cooperation and investment frameworks
- Security collaboration and defence partnerships
- Joint efforts addressing global challenges like climate change and technological advancement
Presidents Costa and von der Leyen will also attend the 77th Republic Day celebrations on January 26 as guests of honor, further symbolizing the strengthening ties between India and the European Union.
Historical Timeline of Bilateral Relations
The diplomatic foundation between India and the EU dates back to the early 1960s, with India being among the first nations to establish formal ties with the European Economic Community (EEC) in 1962. This initial engagement laid the groundwork for subsequent cooperation agreements and strategic partnerships.
Key milestones in the India-EU relationship include:
- 1962: Early Economic Engagement - India establishes formal ties with European Economic Community (EEC)
- 1993: Political Foundation - Adoption of the joint political statement, deepening diplomatic engagement
- 1994: Institutional Cooperation - Signing of the India-EU Cooperation Agreement
- 2000: Summit Level Dialogue - First India-EU Summit in Lisbon, marking new phase of high-level engagement
- 2004: Strategic Elevation - Partnership upgraded to strategic partnership at the 5th summit in The Hague
- 2007: Trade Ambitions - Launch of negotiations for Broad-based Trade and Investment Agreement (BTIA)
- 2020: Future-Oriented Vision - Adoption of India-EU Strategic Partnership Roadmap to 2025
- 2022: Technology and Trade Synergy - Launch of India-EU Trade and Technology Council (TTC)
- 2025: New Strategic EU-India Agenda - EU strategy to reinforce prosperity and security with India
The newly signed Free Trade Agreement represents the culmination of these decades of diplomatic and economic engagement, positioning India and the European Union as major partners in shaping the future of global trade and economic cooperation.
