India and EU Finalize Landmark Free Trade Agreement
India and the European union concluded a comprehensive free trade agreement on Monday, February 24, 2026, a deal Indian Prime Minister Narendra Modi described as the “mother of all deals.” The declaration came during Modi’s speech at India Energy Week.
Economic significance
The free trade agreement encompasses a market of approximately 2 billion people and represents a significant economic partnership, given that the EU accounts for roughly 25% of global GDP and about one-third of global trade. This agreement builds upon India’s existing trade deals with the United Kingdom and the European Free Trade Association (EFTA).
geopolitical Context
the agreement arrives at a time of increasing geopolitical instability, with trade relationships facing challenges globally. According to a CNBC report from January 21, 2026, European lawmakers recently suspended a trade deal with the United States due to tariff disputes related to greenland.
Modi expressed his congratulations to all those involved in negotiating the agreement, specifically mentioning the textiles sector.
Money Sharma | Afp | Getty Images – European Commission President Ursula von der Leyen and India’s prime Minister narendra Modi meet in New Delhi on February 28, 2025, signaling growing collaboration between the EU and India.
