New Delhi, India — January 28, 2026
India and the European Union have finalized a historic Free Trade Agreement (FTA), a deal Prime Minister Narendra Modi described as a “blueprint for shared prosperity and global stability” at a time of growing geopolitical and economic turbulence.
The agreement was announced on Tuesday in New Delhi amid heightened global trade tensions, with leaders from both sides expressing concern over the increasing weaponization of tariffs and technology in international commerce.
🌍 Stability in a World of Turmoil
Addressing a joint press conference with European Council President Antonio Costa and European Commission President Ursula von der Leyen, Prime Minister Modi underscored the broader significance of the agreement.
“This is not just a trade agreement,” Modi said. “It is a new blueprint for shared prosperity. At a time when the global order is witnessing turmoil, India–EU cooperation will provide stability to the world.”
His remarks were widely seen as an indirect reference to recent global tariff measures and trade disruptions.
⚠️ Concern Over Trade Being ‘Weaponized’
European Commission President Ursula von der Leyen echoed similar concerns, warning that global trade is increasingly being used as a strategic weapon.
“The India–Europe partnership will reduce strategic dependencies at a time when global trade is being rapidly weaponized,” von der Leyen said. She added that the agreement would help protect citizens in an increasingly insecure world and expressed Europe’s confidence in India’s economic rise.
European leaders emphasized that deeper cooperation with India is essential to safeguard supply chains and maintain economic resilience.
📜 India’s Largest-Ever Free Trade Deal
Prime Minister Modi stated that the agreement with the 27-nation European Union is the largest free trade agreement in India’s history.
Antonio Costa described the pact as the most ambitious trade agreement ever concluded for a combined market of nearly two billion people, highlighting its scale and strategic importance.
🤝 A Trusted and Strategic Partnership
Leaders on both sides said the agreement sends a strong global message that India and the EU are reliable, trusted partners committed to rules-based trade and cooperation.
Modi also noted that beyond trade, the FTA would strengthen collaboration in maritime security, cyber security, and other strategic domains, reinforcing the partnership’s long-term geopolitical significance.
As global trade faces disruption, India and Europe are betting on cooperation.
Calling the India-EU FTA a “blueprint for stability,” PM Modi said the historic deal will promote shared prosperity at a time when tariffs and technology are increasingly being used as economic weapons.
