India-EU Summit Highlights: India and Europe bound by shared values, FTA to benefit people, says President Murmu

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President Droupadi Murmu on Monday received European Council President Antonio Costa and European Commission President Ursula von der Leyen at Rashtrapati Bhavan and hosted a banquet in their honour. According to Rashtrapati Bhavan, the President said India and Europe are connected not only by contemporary interests but also by shared values such as democracy, pluralism and an open market economy. She expressed confidence that the India–EU Free Trade Agreement would bring significant positive changes to the lives of people on both sides.

BJP leader K Annamalai on Monday hailed the historic India-EU Free Trade Agreement as “the mother of all trade deals,” calling it a free trade corridor connecting nearly 2 billion people and covering around 25% of the world’s GDP. In a post on X, he said the pact will act as a force multiplier for India’s export-led growth, giving entrepreneurs access to one of the world’s richest and most stable markets. Annamalai said the agreement is a game changer for Tamil Nadu, with zero-duty access for textiles allowing Tiruppur and Erode garment units to compete across the USD 263.5 billion EU textile market, generating more jobs for weavers, dyers and MSMEs. He added that tariff elimination on leather and footwear will boost clusters like Vellore and Ambur, while engineering, auto components, electronics, seafood, spices and processed foods from districts including Chennai, Hosur, Coimbatore, Thoothukudi and Nagapattinam can now scale up exports with greater competitiveness. He said farmers, fishermen, small manufacturers and start-ups across the state will benefit through jobs, incomes and investment.

Prime Minister Narendra Modi on Monday said the India–EU Business Forum was an excellent platform to discuss the wide-ranging economic linkages between India and Europe. In a post on X, he added that the Free Trade Agreement signed today brings numerous benefits for businesses, MSMEs, and innovators, calling it a new blueprint for shared prosperity.

Vice President CP Radhakrishnan on Monday held a meeting with European Commission President Ursula von der Leyen and European Council President António Luís Santos da Costa.

Union Home Minister Amit Shah on Monday described the India–EU trade deal as a defining moment that secures a strategic breakthrough in India’s global trade engagement. In a post on X, Shah said the agreement reflects Prime Minister Narendra Modi’s diplomatic vision on the global stage and strengthens India’s mission for an Atmanirbhar Bharat through a trusted, mutually beneficial and balanced partnership. He congratulated the people of India and thanked the Prime Minister for the historic achievement.

European Commission President Ursula von der Leyen on Monday said the India–EU Free Trade Agreement would unlock major opportunities for businesses on both sides. In a post on X after meeting the Indian and European business community in Delhi, she said European exporters would save up to 4 billion Euros a year in duties under the FTA, while EU exports to India are expected to more than double over time.
 

Union Minister Piyush Goyal on Monday highlighted the potential of the India–EU Free Trade Agreement to transform India’s textile sector. “The textile industry is the second-largest job creator in India after agriculture, employing nearly 40 million people. India currently exports about USD 7 billion worth of textiles and garments to the EU, with duty rates up to 12%. With the FTA, we can potentially grow exports to USD 30-40 billion, creating 6-7 million new jobs in the sector,” Goyal said. He noted that the agreement levels the playing field with countries like Bangladesh, which previously benefited from zero-duty access as the least developed country, allowing India to expand its share in the USD 250 billion EU textile market. Goyal added that the FTA’s sectoral gains, particularly in labour-intensive industries, offer tremendous potential for job creation across India.

Bharti Enterprises Founder and Chairman Sunil Bharti Mittal on Monday said the signing of the India–EU Free Trade Agreement reflects the decisive leadership and strategic resolve of Prime Minister Narendra Modi and European leaders in strengthening the India–EU partnership. In a statement, Mittal said that amid a changing global economic order, the agreement sends a powerful message of trust, stability and long-term partnership, and is expected to open new avenues for collaboration in areas such as digital infrastructure, space connectivity and secure networks. He said the FTA also creates opportunities for Indian companies like Airtel to invest in digital infrastructure in Europe, calling it a turning point in the shared future of India and the European Union.

India and the European Union (EU) announced the conclusion of negotiations on a long-awaited free trade agreement (FTA) on Tuesday. However, the trade deal, which marks a major milestone, was not signed today. That is because the deal has to undergo legal vetting, translation and ratification. Read full story here

Prime Minister Narendra Modi on Monday said the conclusion of the India–EU Free Trade Agreement marks a “significant milestone” in relations between India and Europe. In a post on X, he thanked European leaders for their constructive spirit and commitment over the years, and said the agreement would deepen economic ties, create opportunities for people on both sides, and strengthen the India-Europe partnership for a prosperous future.
 

The India–EU trade deal has further honed the strategic partnership between the two sides, with outcomes that are “deeply strategic in nature”, Foreign Secretary Vikram Misri said at a Ministry of External Affairs press briefing on Monday. He said the agreement places defence cooperation and economic ties at its core, will boost maritime security, and create legal pathways for the Indian workforce. Misri described it as a visionary deal with an outlook towards 2030, adding that the India–EU bilateral trajectory reflects impressive growth across key indicators.

The EU–India Free Trade Agreement is historic and the largest trade deal ever concluded by either side, and will further intensify economic and political ties with India, Finland President Alexander Stubb said. In the current global environment, it is essential for both the European Union and Finland to strengthen and deepen partnerships across the world, he added.

Vice-President of the European Commission Kaja Kallas on Monday said the European Union faces an “existential threat” from Russia, prompting its member states to significantly increase defence spending and reassess where and with whom they procure military capabilities. Speaking on defence cooperation, Kallas said the EU would prioritise spending on European industry in the first round, but would look beyond the bloc if domestic industry is unable to meet requirements. She said competition from a “big country like India” could be beneficial for European industries, pushing them to innovate and find solutions.

External Affairs Minister S Jaishankar on Monday said India and the European Union concluded “path-breaking” agreements at the 16th India–EU Summit under the leadership of Prime Minister Narendra Modi, European Council President António Costa and European Commission President Ursula von der Leyen. In a post on X, Jaishankar said the Free Trade Agreement, Security and Defence Partnership, Comprehensive Framework of Cooperation on Mobility and other accords signed at the summit form the basis of a broader, deeper and stronger India–EU partnership, adding that the summit would strengthen multipolarity and help de-risk the global order.

Mercedes-Benz India MD & CEO Santosh Iyer welcomed the Indo-EU Free Trade Agreement, calling it a “historic achievement” that underlines India’s rising global economic relevance. “We always advocated free trade as it brings down trade barriers, leverages mutual strengths of global economies, and mitigates supply chain uncertainties,” Iyer said, adding that the FTA could boost growth, open new markets, create jobs, and drive technological innovation and sustainable growth in the automotive sector, with a focus on future mobility. He, however, noted that the final impact can be assessed only after the fine print of the agreement is available. Iyer said Mercedes-Benz India does not foresee any vehicle price reduction from the FTA in the near future. “With more than 90% of Mercedes-Benz India’s sales volume comprising ‘Made in India’ locally manufactured models, and only ~5% of sales coming via CBU imports from EU, we do not foresee any price reduction in the foreseeable future,” he said, adding that the company will continue to focus on local production, competitive pricing, and value addition for Indian customers.

Uttar Pradesh Chief Minister Yogi Adityanath on Monday hailed the India–European Union Free Trade Agreement as a “historic leap” in the country’s global economic journey under the leadership of Prime Minister Narendra Modi. In a post on X, Adityanath said the strategic pact integrates India with 27 European nations and provides preferential market access for more than 99 per cent of Indian goods, unlocking export potential of nearly Rs 6.41 lakh crore, particularly for labour-intensive sectors. He said the agreement would empower farmers, strengthen MSMEs, boost manufacturing and services, and expand opportunities for skilled professionals, calling it a blueprint for shared prosperity and a stronger, self-reliant India.

The leaders of India and the European Union have issued a joint statement after the announcement of the India-EU trade deal. 

"Prime Minister Narendra Modi along with President António Costa and President Ursula von der Leyen co‑chaired the 16th India–EU Summit in New Delhi on 27 January 2026 and underlined their commitment to raise the India–EU Strategic Partnership to a higher level based on shared values and principles including democracy, human rights, pluralism, rule of law, and the rules‑based international order with the UN at its core. They are committed to tackling security threats, promoting inclusive and sustainable growth, strengthening economic resilience and security, advancing climate and biodiversity action, and accelerating progress on the Sustainable Development Goals," the two parties said.

(With inputs from ANI)

Talking about the historic India-EU trade deal, the European Union Chief Ursula Von Der Leyen, gave a reference of Makar Sankranti.

"Two weeks ago, India marked Makar Sankranti. It's the beginning of Uttarayan, the sun's northward journey. From darkness to light, from stillness to growth, from what was to what can be...The time is right for renewal, for fresh momentum, and for opening a new chapter in EU-India friendship. This is exactly what we have achieved together today," she said during her speech.

European Commission chief, Ursula von der Leyen, said that the bloc's and India's greatest wealth are the people. "We both know our greatest wealth are our people. That is why I'm so glad we are signing a mobility agreement. We will facilitate the movement of students, researchers, seasonal and highly skilled workers. This is also why we are launching the first EU legal gateway office in India. It will be a one-stop hub to support Indian talent moving to Europe in full alignment with EU member states' policies. This is good for our economies. This is good for the friendship between our people and this openness benefits us all."