India’s landmark free trade agreement with the European Union marks more than an economic milestone; it underscores the shift toward a truly multipolar global order. Together, India and the EU form one of the world’s largest economic partnerships, spanning nearly 2 billion people and accounting for about a quarter of global GDP.
The deal completes a key gap in India’s foreign policy vision under Prime Minister Narendra Modi, positioning New Delhi to engage all major power centres on its own terms. While India already maintains strong ties with the US, Russia, Japan, ASEAN nations and Indo-Pacific partners, the EU — a $19–20 trillion economy had remained the missing link.
Beyond trade, the pact carries strategic weight. It includes three pillars: a free trade agreement, a defence and security partnership, and a long-term strategic agenda. Once implemented, India–EU trade could surge from $130 billion to $300 billion within two years, with up to 90% of Indian exports entering Europe duty-free.
Equally significant is the defence component, which opens doors for European defence firms to collaborate with India’s private sector, reinforcing “Make in India” and deepening strategic cooperation between major democracies.
