India-EU Relations Enter New Era as PM Modi Highlights Historic FTA and Global Growth Vision

New Delhi, Jan 27: Prime Minister Narendra Modi on Tuesday said India and the European Union have entered a “new era of alignment,” marking a historic phase in bilateral relations with the conclusion of the largest Free Trade Agreement (FTA) in India’s history and an expanding strategic partnership between the world’s two largest democratic blocs.

Addressing the India-European Union Business Forum at Bharat Mandapam here, the Prime Minister said the visit of the Presidents of the European Union Council and Commission to India was not a routine diplomatic engagement but the beginning of a new chapter in India-EU ties. He noted that for the first time, EU leaders attended India’s Republic Day as Chief Guests, symbolising the growing closeness between the two partners.

Highlighting the scale of cooperation, Shri Modi said bilateral trade has doubled over the past decade to 180 billion euros, with more than 6,000 European companies operating in India and EU investments crossing 120 billion euros. He added that 1,500 Indian companies are now present in the EU, with Indian investments nearing 40 billion euros.

The Prime Minister announced that the newly concluded comprehensive FTA will open easier market access for India’s labour-intensive products in the European Union. He said sectors such as textiles, gems and jewellery, auto components, engineering goods, agriculture, processed food and marine products will benefit significantly, directly helping farmers, fishermen and workers. He also noted that the services sector, including IT, education, traditional medicine and business services, will gain fresh opportunities.

Calling for a “whole-of-society partnership,” Shri Modi urged businesses on both sides to take the lead in scaling cooperation. He said the FTA sends a strong and positive signal to the global business community at a time when companies worldwide are reassessing supply chains and partnerships.

Outlining future priorities, the Prime Minister stressed the need to jointly de-risk critical dependencies in areas such as electric vehicles, batteries, semiconductors and APIs, and to build trusted supply chains. He called for deeper collaboration in defence, space, telecom and artificial intelligence, and joint efforts in green hydrogen, solar energy, smart grids and sustainable mobility.

Stating that the responsibility now rests with the business community, Shri Modi said, “The ball is in your court,” urging industry leaders to transform policy decisions into concrete outcomes. He concluded by calling on India and the EU to become a “double engine of global growth” through collective effort and shared prosperity.

President of the European Commission Ursula von der Leyen, along with Indian and European business leaders, were present at the forum.