Updated 27 January 2026 at 12:37 IST
India-EU FTA Sealed: Powerful PM Modi-EU Leaders' Handshake Moment Sends Big Global Message
The EU leaders paid tribute to the Father of the Nation, Mahatma Gandhi, by laying a wreath at his memorial in Raj Ghat, as part of their state visit to India.
New Delhi: Prime Minister Narendra Modi met the President of the European Council, Antonio Luis Santos da Costa and the President of the European Commission, Ursula Von Der Leyen, here in the national capital on Tuesday. The leaders displayed the spirit of bonhomie as they met at the Hyderabad House.
Earlier, the EU leaders paid tribute to the Father of the Nation, Mahatma Gandhi, by laying a wreath at his memorial in Raj Ghat, as part of their state visit to India.
The ceremony, held in the presence of senior Indian officials, was part of their ongoing state visit and coincided with the 16th India-EU Summit in New Delhi, which will be co-hosted by Prime Minister Narendra Modi. The European leaders also signed the guestbook at the memorial site after the wreath-laying ceremony andpaying floral tribute to the Mahatma.
The visit comes at a time when both sides have concluded their discussion of a free trade agreement, which is expected to strengthen their shared commitment to democracy and the rule of law. On Tuesday, Prime Minister Narendra Modi hailed the India-EU Free Trade Agreement, reiterating it as the 'Mother of all deals' and how it illustrates the partnership between two major economies of the world. The deal becomes significant as it links two major economies that command a quarter of the world's GDP.
PM Modi made the remarks while virtually addressing the Opening Ceremony of India Energy Week 2026. He added that the free trade agreement with the EU will complement existing agreements with the United Kingdom and members of the European Free Trade Association (EFTA). Extending his congratulations to those associated with different sectors, the Prime Minister said the agreement would be highly beneficial for industry stakeholders. He added that the trade deal would have a positive impact on both manufacturing and services in the country.
Emphasising the broader global impact, PM Modi said the FTA would boost global confidence in India. "This Free Trade Agreement will further strengthen global confidence in India for businesses and investors across the world," he said, adding that India is actively working on global partnerships across all sectors.
On Monday, the negotiations for the 'Mother of all deals', as it has been called, concluded successfully and will be announced today during the India-EU summit. Earlier today, India and the European Union also inked the security and defence partnership here in the national capital. European Union Vice President Kaja Kallas said on the occasion, "The signing of the Security and Defence Partnership is a milestone, and we can build on that. There is so much more we can work together on in the multilateral fora, as well as bilaterally, to further develop defence cooperation."
With the signing of the deal, India becomes the third Asian country to have such a deal with the EU after Japan and South Korea. Speaking on the upcoming deal, European Commission President Ursula von der Leyen said, "India and Europe have made a clear choice. The choice of strategic partnership, dialogue and openness. Leveraging our complementary strengths. And building mutual resilience. We are showing a fractured world that another way is possible.
"European Council President Antonio Costa echoed that thought, saying, "India is a crucial partner for the EU. Together, we share the capacity and responsibility to protect the rules-based international order. "In trade in goods, the EU is India's second-largest trading partner, right after China and ahead of the United States, accounting for 11.5 per cent of India's total goods trade.
Published By : Namya Kapur
Published On: 27 January 2026 at 12:27 IST