President Droupadi Murmu Hails Historic India-EU Free Trade Agreement as a Milestone in Global Cooperation

President Droupadi Murmu has expressed profound happiness over the successful conclusion of the India-European Union Free Trade Agreement, describing it as a landmark achievement that will bring significant positive changes to the lives of people in both India and the European Union.

Speaking at a banquet hosted at Rashtrapati Bhavan in honour of European Council President António Costa and European Commission President Ursula von der Leyen, President Murmu highlighted the deep-rooted connections between India and Europe. She emphasised that the partnership extends beyond immediate economic interests and is anchored in shared values of democracy, pluralism, and open market economies.

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A Long-Awaited Breakthrough

The India-EU Free Trade Agreement was formally concluded on January 27, 2026, during the India-EU Summit in New Delhi. This comprehensive pact comes after nearly two decades of negotiations that began in 2007 and were relaunched with renewed momentum in 2022. European Commission President Ursula von der Leyen aptly termed it the “mother of all trade deals,” reflecting its vast scale and ambition.

The agreement unites two major economies representing nearly two billion people and accounting for approximately 25 percent of global GDP. It is expected to substantially boost bilateral trade, which already stands at over €120 billion in goods, and foster greater investment flows between the two sides.

Economic Benefits and Market Access

Under the agreement, both sides have committed to extensive tariff reductions. The EU will provide duty-free or significantly reduced tariff access to over 99 percent of Indian exports, offering a major boost to labour-intensive sectors such as textiles, apparel, leather, footwear, gems and jewellery, pharmaceuticals, and fisheries. This enhanced market access is anticipated to drive growth in manufacturing and services, creating fresh employment opportunities, particularly for India’s youth.

In return, India will eliminate or reduce tariffs on 96.6 percent of EU goods exports. This will benefit European industries including automobiles, machinery, chemicals, pharmaceuticals, and agri-food products. The deal includes phased liberalisation to ensure a balanced transition, along with provisions to protect sensitive sectors.

Beyond trade in goods, the agreement encompasses services, investment facilitation, regulatory cooperation, and digital trade. It also promotes collaboration between micro, small, and medium enterprises while strengthening supply chain resilience.

Strategic and Broader Partnership

President Murmu also welcomed the newly signed India-EU Security and Defence Partnership, which opens new avenues for cooperation in defence industries. She expressed India’s strong interest in expanding collaboration with the EU in critical areas such as clean energy, climate finance, and sustainable technologies.

The timing of this agreement holds special significance amid evolving global trade dynamics. It underscores the commitment of both India and the EU to a stable, rules-based international order and offers a platform for joint efforts in addressing pressing global challenges like climate change and sustainable development.

The MGMM Outlook 

The successful conclusion of the India-European Union Free Trade Agreement marks a defining moment in India’s global economic engagement and reflects the growing trust between two major democratic powers. The agreement is expected to significantly expand trade, investment, and technological cooperation while creating new opportunities for Indian industries such as textiles, pharmaceuticals, gems and jewellery, leather, and fisheries. With improved access to the European market, India stands to strengthen its manufacturing ecosystem, generate employment for the youth, and accelerate its ambition of becoming a leading global economic powerhouse.

The broader significance of the agreement goes beyond commerce, as it reinforces India’s strategic partnership with the European Union in areas such as clean energy, digital trade, climate cooperation, and defence collaboration. At a time of shifting geopolitical and economic realities, the pact demonstrates a shared commitment to a stable, rules-based international order and resilient supply chains. President Droupadi Murmu’s remarks underline the optimism surrounding this milestone, which is expected to deepen long-term cooperation and strengthen India’s position as a trusted global partner.

(Sources: News On Air, India Today, PIB)