India-EU FTA to boost cooperation in maritime sector, cybersecurity: Modi

India and the European Union announced the conclusion of negotiations for the free trade agreement, which officials described as the "mother of all deals"

India on Tuesday concluded its largest free trade agreement with the European Union after negotiations spanning more than two decades, Prime Minister Narendra Modi said on Tuesday following summit-level talks with European leaders.

 

The agreement was announced after discussions between Prime Minister Modi, European Commission President Ursula von der Leyen, and European Council President Antonio Costa.

 

Speaking after the Summit, PM Modi said the agreement went beyond trade and reflected a broader strategic partnership between India and the European Union.

 

“This is not just a trade agreement. This is a new blueprint for shared prosperity,” he said.

 

He said cooperation between India and the European Union would contribute to global stability at a time of uncertainty.

 

“There is turmoil in the global environment. India-EU cooperation will provide stability to the world order,” Modi said.

 

Modi said the relationship between the two sides extended beyond commerce. “India-EU cooperation is a partnership for global good,” he said.

 

He added that the free trade agreement would strengthen cooperation in key areas such as the maritime sector and cybersecurity.

Costa outlines geopolitical and security outcomes

EC President Costa said the Summit sent a clear message to the international community.

 

“The Summit gives a clear message to the world that India and the European Union stand together as reliable partners,” Costa said.

 

“The European Union and India are committed to acting together as anchors of stability in an increasingly fragmented and multipolar world,” he added.

 

Outlining the outcomes of the 16th EU-India Summit, Costa said three key decisions were reached.

 

“The EU-India Free Trade Agreement is a crucial geopolitical stabiliser. It shows how the EU and India are acting together to protect international rules-based trade by offering partnerships instead of tariffs,” he said.

 

Costa said the two sides also agreed on a new security and defence partnership.

 

“A new Security and Defence Partnership will strengthen our cooperation to address the full spectrum of security threats and better protect our citizens and shared interests: in Europe, the Indo-Pacific, and globally,” he said.

 

He added that the Summit also resulted in a shared roadmap for the future.

 

“A Joint Comprehensive Strategic Agenda towards 2030 aligns our priorities on energy, connectivity and mobility,” Costa said.

Von der Leyen on security and partnership

The European Commission President said the agreement reflected shared priorities in a changing global environment.

 

“We are delivering security for our people in an increasingly insecure world,” von der Leyen said.

 

She also said Europe welcomed India’s economic rise. “India has risen, and Europe is truly glad about it,” she said.

‘Mother of all deals’ concluded

The two sides concluded what officials had described as the “mother of all deals”, a phrase first used by Commerce Minister Piyush Goyal earlier this month to describe the Indian-EU FTA.

 

Under the agreement, 93 per cent of Indian exports will receive duty-free access to the 27-nation European Union, while imports of luxury cars and wines from the EU  will become less expensive.

 

The agreement will create a combined market of around two billion people from both sides.

 

Taken together, India and the EU account for about 25 per cent of global gross domestic product and roughly one-third of global trade, estimated at around $11 trillion out of $33 trillion.

 

The deal marked the conclusion of stop-start negotiations that have been in the making for the past 20 years ago.

 

The European Union is one of India’s largest trading partners, with bilateral trade in goods and services expanding steadily.

 

India and the European Union are also the world's fourth and second largest economies, respectively, together accounting for a fourth of global GDP and a third of global trade. The integration of two large, diverse, and complementary economies is expected to create significant trade and investment opportunities, according to an official release shared by Ministry of Commerce and Industry.