India and the EU have signed a free trade agreement; PM Modi made a major announcement.

A historic free trade agreement (FTA) has been signed between India and the European Union. After 18 years of negotiations, both sides have given their approval in New Delhi. A European Union delegation met with Defence Minister Rajnath Singh, after which Prime Minister Narendra Modi also announced the agreement.

Addressing the inaugural ceremony of India Energy Week 2026, Prime Minister Narendra Modi said, "People around the world are calling India's deal with European countries the 'Mother of All Deals'."

PM Modi's Announcement

Announcing the historic agreement between India and the EU, PM Modi said, "Just yesterday, a very big agreement was signed between India and the European Union. People around the world are discussing it as the 'Mother of All Deals'. This agreement brings a huge opportunity for the 1.4 billion people of India and millions of people in European countries."

PM Modi said:

"This agreement is a wonderful example of collaboration between two of the world's largest economies. This agreement represents nearly 25 percent of global GDP and approximately one-third of global trade. This agreement strengthens our shared commitment to trade, as well as to democracy and the rule of law."

India ranks second in refining capacity: PM Modi.

According to PM Modi, "India has a very large refining capacity. We are second in the world in refining capacity and will soon be number one. Today, India's refining capacity is approximately 260 MMTPA. We are continuously working to increase it to 300 MMTPA. This is a huge opportunity for investors."

India-EU FTA

It is worth noting that negotiations on the FTA between India and the European Union have been ongoing since 2007. After a long wait of 18 years, both sides have given their approval. The FTA deal was given the green light by European Union President Ursula von der Leyen and European Council President António Luís Santos da Costa on behalf of the European Union.