'We Did It': Historic India-EU Free Trade Deal 'Win-Win' Pact To Strengthen Global Stability | Full Joint Statement

India and the European Union on Tuesday announced the conclusion of a historic Free Trade Agreement (FTA), alongside the launch of their first-ever security and defence partnership, marking a significant expansion of cooperation between the world’s two largest democratic blocs.

Speaking at the joint press conference, Prime Minister Narendra Modi described the developments as a defining moment in India–EU ties, coming a day after European leaders participated as chief guests at India’s Republic Day celebrations.

“Yesterday was a historic moment when EU leaders joined in the Republic Day parade. Today is also a historic day as two big democracies are joining hands,” Modi said.

Highlighting the scale of engagement between the two sides, the Prime Minister noted that bilateral trade has reached $180 billion, while nearly eight lakh Indians reside across EU member states.

“In the last few years, India-EU has developed its relationship. Our partnership is reaching new heights,” he said.

Historic India–EU Free Trade Agreement

Calling the pact India’s most ambitious trade agreement to date, Modi said the FTA with all 27 EU member states would unlock opportunities across agriculture, manufacturing and services, while boosting investment flows.

“India’s historic free trade agreement in history, the India-EU FTA with 27 states, will benefit farmers, create new opportunities in manufacturing, and support the services sector. This FTA will boost India-EU investment,” he said.

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Security, Defence and Global Cooperation

The Prime Minister also announced new avenues for defence collaboration, including co-development and co-production between Indian and European companies.

“Our defence companies will get new opportunities for co-development,” Modi said.

Outlining the broader vision ahead, he said India and the EU are launching “an ambitious and holistic approach for the next five years”, aimed at advancing shared prosperity, innovation, security cooperation and people-to-people ties.

“India and EU’s partnership is for global good, from Indo-Pacific to the Caribbean,” Modi said, adding that the IMEC corridor will be opened up for global trade.

European Council President Antonio Costa: ‘Opening a New Chapter’

European Council President Antonio Costa called the summit a turning point in bilateral relations, describing the conclusion of trade negotiations as a powerful signal at a time of global uncertainty.

“Today is a historic moment. We are opening a new chapter in our relations on trade, on security, on people-to-people ties,” Costa said.

Reflecting on the FTA, he said: “That’s why today’s free trade agreement is of historic importance — one of the most ambitious agreements ever concluded, creating a market of 2 billion people.”

Costa underlined the strategic significance of the new security and defence partnership, calling it:

“The first such operational defence and security framework between India and the European Union.”

On global issues, he reaffirmed shared positions on multilateralism and peace.

“The partnership between India and the European Union will strengthen stability in the international system,” Costa said, adding that both sides discussed Ukraine, West Asia and the Indo-Pacific.

Ursula von der Leyen: ‘The Mother of All Deals’

European Commission President Ursula von der Leyen described the agreement as a transformational moment for both economies.

“Prime Minister, distinguished friend, we did it. We delivered the mother of all deals,” she said.

Calling the pact a tale of two global economic giants, she added:

“We are creating a market of 2 billion people… Two giants who choose partnership in a true win-win fashion.”

Von der Leyen said the agreement would strengthen supply chains, manufacturing, and employment.

“It will cut up to 4 billion euros in annual tariffs for exporters of all sizes. And it will create good jobs for millions of workers here in India and in Europe,” she said.

She also announced the launch of the first-ever EU–India security and defence partnership, covering maritime security, cyber threats, space security and counter-terrorism cooperation.

On innovation, von der Leyen revealed plans to work towards India’s association with Horizon Europe, the EU’s flagship research programme.

“Europe and India will always choose science. We will always choose progress,” she said.

Concluding her remarks, she emphasised people-to-people ties, mobility, and talent exchange as central pillars of the relationship.

“Europe and India have chosen to be reliable partners to one another, and this is how we demonstrate the trust we share,” she said.

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