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India–EU FTA draws global praise

Agencies
Updated: January 29th, 2026, 20:16 IST
in Business, International
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The conclusion of the India–EU Free Trade Agreement has drawn strong and positive reactions worldwide, cutting across international media, foreign political leadership, global business heads and respected policy experts. The deal is widely described as historic, strategic and timely, both economically and geopolitically.

International media

Leading global media outlets highlighted the scale, ambition and strategic timing of the India–EU FTA.

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The Telegraph, in an article by James Crisp titled “Modi is real winner in ‘mother of all trade deals’ with EU,” described the agreement as the “mother of all trade deals,” arguing that India has emerged as the real strategic winner. The paper noted that the deal eliminates or reduces tariffs on 96.6% of EU exports to India, while the EU will cut tariffs on 99.5% of Indian goods over seven years.

Bloomberg, in an article by Dan Strumpf titled “All Roads Lead to Modi as World Hedges Trump,” said the “mother of all deals” between India and the European Union reflects an emerging pattern of New Delhi becoming a go-to partner for countries worldwide.

The Wall Street Journal framed the agreement as a response by middle powers to global tariff disruptions, highlighting how India and the EU are expanding alliances amid uncertainty created by U.S. trade policies.

The New York Times noted that the deal brings together the world’s largest economic bloc and the fastest-growing major economy after nearly two decades of negotiations.

The Washington Post called it a historic agreement with the headline: “India and EU clinch the ‘mother of all deals’ in a historic free trade agreement.”

The Guardian referred to it as “‘Mother of all deals’: EU and India sign free trade agreement.”
The BBC carried a similar headline: “India and EU announce ‘mother of all trade deals’.”

In another article, Bloomberg discussed the potential for deeper supply-chain integration, noting that duties on cars will fall as low as 10%, compared with earlier levels of more than 100%, and that duties on auto components will be eliminated.

The Associated Press highlighted the scale of the agreement, saying: “India and the European Union reach a free trade deal representing a third of global trade.”

Al Jazeera also underlined the scale, stating: “‘Mother of all deals’: How India-EU trade deal creates a $27 trillion market.”

Reuters called it a landmark pact, reporting: “India, EU reach landmark trade deal, tariffs to be slashed on most goods.”

On Fox News, Pakistani journalist Qamar Cheema said India is set to benefit significantly from the agreement, as tariffs will be reduced to zero in several key sectors. He said neighbouring countries such as Pakistan and Bangladesh would find it difficult to compete with India in the European market.

Foreign Leaders

Several senior European leaders welcomed the agreement.

German Chancellor Friedrich Merz called the conclusion of negotiations a ‘very positive sign’ and urged swift implementation to boost growth and prosperity.

Finnish President Alexander Stubb described the India–EU FTA as historic and the largest trade deal ever concluded by either side, saying it would significantly deepen economic and political ties.

Swedish Prime Minister Ulf Kristersson said the agreement marks the beginning of a new era of cooperation, strengthening prosperity, competitiveness and security through trade.

Austrian Chancellor Christian Stocker said the deal creates a free-trade zone benefiting two billion people, calling it a major step for Europe’s resilience in a rapidly changing global order.

Danish Foreign Minister Lars Løkke Rasmussen called the agreement geopolitically crucial, highlighting the first-mover advantage in a combined market of two billion people.

France’s Minister Delegate for Foreign Trade and Economic Attractiveness, Nicolas Forissier, termed the accord a major political step, stressing that “this is not an agreement like the others.”

Sandro Gozi, a member of the European Parliament, said the deal reflects the EU’s need to diversify partnerships and enhance strategic autonomy, calling India a major global actor and noting the geopolitical and diplomatic opportunities for both sides.

Business Leaders and Organisations

European and global business leaders operating in India expressed strong optimism, calling the agreement a long-awaited breakthrough.

Jürgen Westermeier, president and managing director for India and South Asia at Airbus and president of the Federation of European Business in India, described the FTA as a “big moment” after 20 years of negotiations, saying it would accelerate opportunities for both sides.

Wouter van Wersch, president of Airbus International, called it a “fantastic day,” reiterating Airbus’ long-term commitment to Make in India, technology transfer, defense, space and advanced manufacturing.

Jan Noether, director general of the Indo-German Chamber of Commerce, said the agreement brings together two billion people and nearly a quarter of global GDP, describing it as the “mother of all free trade agreements.”

Sebastian Stiezel, president of the Berlin Chamber of Commerce (IHK Berlin), said the FTA marks an important step in an increasingly tense global environment, adding that India is no longer a future market but a market of the present.

Senior executives from German automakers including Volkswagen, BMW and Mercedes-Benz welcomed the deal’s potential to boost exports to India and strengthen global supply chains.

The Croatian Employers’ Association and BusinessEurope called the EU-India FTA one of the EU’s most important trade moves amid rising global protectionism.

Swedish business groups Svenskt Näringsliv and Företagarna described it as a major opportunity due to reduced tariffs and improved market access.

Irish business bodies also welcomed the agreement. Chambers Ireland called it historic, saying it would enhance market access and diversification for Irish exporters, particularly in machinery and agri-food sectors.

Other business leaders—including Frank Schlöder of Häfele South Asia, Thomas Wolter of Krones Machinery India, Lars Eric Johansson of Oxea GmbH, Jan-Olof Jacke of the Confederation of Swedish Enterprise and BusinessEurope President Fredrik Persson—said the deal sends a strong signal in favor of rules-based trade, supply-chain resilience, SME growth and long-term competitiveness.

International Experts and Think Tanks

Global policy experts and think tanks described the agreement as substantively strong and strategically well timed.

Richard Rossow, senior adviser at the Center for Strategic and International Studies, said the deal brings together a quarter of the world’s population and a large share of global trade, adding that its positive optics are backed by strong substance.

Michael Kugelman, senior fellow at the Atlantic Council, called the India–EU FTA the “right deal at the right time,” saying it consolidates a fast-growing strategic partnership beyond merely offsetting U.S. tariffs.

Geopolitical strategist Velina Tchakarova described it as one of the most consequential geoeconomic agreements of the decade.

The Kiel Institute for the World Economy said deeper EU-India integration could boost bilateral trade by 41% to 65% and raise real incomes by 0.12% to 0.13% of GDP on both sides.

The European Council on Foreign Relations called the agreement one of the largest trade deals concluded in recent years, covering goods, services, investment, digital trade and regulatory cooperation.

The International Institute for Strategic Studies said India’s pursuit of multiple trade agreements signals a shift toward a more open economy and would support its long-term development goals.

 

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