INDIA-EU FTA REFLECTS BROADER SHIFT IN GLOBAL ECONOMIC ALLIANCES

On 27 January 2026, India and the European Union reached a historic milestone by finalising a long-awaited Free Trade Agreement, marking one of the most significant developments in global trade diplomacy in recent years.

- SHARANPREET KAUR

PM Narendra Modi (C) with the president of the European Commission, Ursula von der Leyen (R) and the president of the European Council, António Costa.

After nearly two decades of negotiations marked by repeated pauses, political transitions, and complex economic disagreements, both sides announced the conclusion of what has been described as the “mother of all trade deals.” The agreement reflects a major step forward in strengthening economic, strategic, and political relations between India and the 27-nation European Union at a time when the global trading system is undergoing rapid transformation. Leaders on both sides emphasised that the deal is not merely commercial in nature but represents a long-term partnership built on shared interests, mutual growth, and economic resilience.