'Mother Of All Deals': India, EU Mega Trade Pact Set for Signing After 18 Years | Here's All You Need To Know

New Delhi: India and the European Union concluded discussions for a long-pending Free Trade Agreement (FTA), marking a major step in bolstering economic ties between the two sides. Visiting European Union leaders described a “successful India” as being in the best interests of the entire world, as officials in New Delhi indicated that official-level talks have been wrapped up. 

On Monday, January 26, 2026, Commerce Secretary Rajesh Agrawal stated that all parties are ready to declare the agreement's completion on January 27. “Official level negotiations are being concluded and both sides are all set to announce the successful conclusion of FTA talks on January 27,” he informed reporters.

Negotiations were completed on Friday, January 23, 2026, and approved by both parties on Saturday, January 24, 2026, according to Commerce Ministry sources. They noted that after legal teams finish a thorough examination, or legal "scrubbing," the final text will be ready.

Union Commerce and Industry Minister Piyush Goyal has referred to the agreement as "the mother of all deals," describing it as the biggest trade agreement India has ever signed.

Agreement to Be Announced at India-EU Summit

​​On Tuesday, January 27, 2026, Prime Minister Narendra Modi will meet with European Council President Antonio Costa and European Commission President Ursula von der Leyen at the India-EU Summit, where the FTA will be formally announced.

The trade agreement is a component of a larger series of agreements that also include a mobility arrangement, cooperation on energy, and a Security and Defense Partnership. It is anticipated that these agreements will be signed at the summit.

Prior to the discussions, Prime Minister Modi posted on social media that the top EU officials' attendance "underscores the growing strength of the India-European Union partnership and our commitment to shared values." 

The leaders saw the procession that displayed India's military hardware and troops, including those engaged in Operation Sindoor against Pakistan in May 2025. Following Russia's invasion of Ukraine in February 2022, the EU imposed sanctions on a large portion of the hardware that was on show.

In reference to maritime security, Mr. Costa stated on social media that it was "an opportunity to recall the importance of the action of the EU Naval Forces to enhance maritime security and protect the freedom of navigation, in particular in the Indo Pacific," without any mention of the European conflict.

Nearly Two Decades of Talks Come to an End

The conclusion of the FTA marks the end of a long negotiation cycle that began in 2007. Disagreements about market access for European dairy and agricultural products, environmental regulations, investment requirements, and immigration difficulties have caused negotiations to stall multiple times over the years.

Negotiations were resumed with more realistic goals after being put on hold between 2014 and 2022. According to reports, both parties decided to exclude areas where an agreement could not be reached.

Following the formal announcement of the agreement, the legal review will be finished, and the text will be translated and distributed to all 27 EU member states. The European Parliament will then need to give its approval. The Union Cabinet is the sole body in India that must approve the agreement.

According to Commerce Secretary Agrawal, the deal is balanced and made to accommodate future needs. According to him, it is anticipated to increase trade and investment between the two nations and promote deeper economic integration with the European Union.

“Negotiations have been successfully concluded. The deal has been finalised,” he said.

He added that attempts are being made to finish formal procedures and sign the agreement as soon as possible, and that the legal review is presently under progress.

The deal is likely to come into force early next year, though execution will take time due to regulatory processes in Europe. 

Trade Impact and Strategic Cooperation

India and the EU already have more than $136 billion in bilateral trade. According to officials, the pact would rank among the biggest bilateral trade agreements in the world because, unlike ASEAN countries, the EU operates as a unified customs union. 

The EU recently signed a trade deal with the South American bloc MERCOSUR, and it presently has free trade agreements with eight other nations. Additionally, it is anticipated that India and the EU would strengthen their strategic alliance, which was first formed in 2004, and improve defense cooperation, particularly in the areas of cyber security, maritime security, and counterterrorism.

The FTA is anticipated to grant duty-free access to a number of Indian goods in the European market once it is put into effect. Industries that require a lot of labor, such textiles, chemicals, jewelry and gems, electrical machinery, leather goods, and footwear, are probably going to gain the most.

After almost eighteen years of discussions, the India-EU Free Trade Agreement is anticipated to be crucial in boosting economic engagement and fortifying the two countries' overall partnership.