India-EU Free Trade Agreement is a game-changing development for both sides
- IBEF
- February 9, 2026
The External Affairs Minister Dr. S. Jaishankar termed the India-EU Free Trade Agreement a 'landmark shift' that will dramatically scale up both economic and strategic engagements between India and the European Union. Addressing the opening session of the India-EU Forum in New Delhi, the External Affairs Minister Dr. S. Jaishankar stated, "This Agreement is not just a trade deal. It's a platform to expand our cooperation in security, defence, climate action, technology partnerships, and talent mobility that would form the foundation for a deeper and wider partnership." The statement also expressed confidence that the Forum could ignite a continuous process of consultations and convergence on common priorities and open more market access for Indian goods and services in one of the world's biggest economic blocs.
Indian industry and business groups have welcomed the FTA, citing that this agreement would open export opportunities, reduce tariff and non-tariff barriers, and attract foreign direct investment into Indian manufacturing and services. The deal, supposedly the ‘mother of all trade deals, will lock together two massive economic zones, and both are set for gains to come from heightened trade flows, enhanced value-chain integration, and diversified supply partnerships in more varied ways. The wider perspective is that observers view the deal as one that will deepen strategic relationships and, therefore, be beneficial to global economic stability and common prosperity. As the agreement progresses, exporters and investors in both regions should experience increased predictability and access to new markets.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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