The Prime Minister on Monday described the India–European Union Free Trade Agreement (FTA) as a “positive and forward-looking start to 2026,” underlining its potential to unlock new growth opportunities for key Indian sectors and strengthen India’s global trade position.
Speaking at a policy forum, the Prime Minister said the agreement reflects a shared commitment by India and the EU to deepen economic cooperation, enhance market access, and build resilient supply chains in an increasingly uncertain global environment. He emphasised that the FTA is not just about trade numbers, but about long-term partnerships that promote innovation, sustainability, and inclusive growth.
According to the Prime Minister, Indian sectors such as manufacturing, textiles, pharmaceuticals, information technology, agriculture, and renewable energy stand to benefit significantly. Improved access to European markets is expected to boost exports, encourage foreign direct investment, and support job creation across the country. Small and medium enterprises (SMEs), in particular, were highlighted as major beneficiaries due to simplified trade rules and reduced tariffs.
The agreement also places strong emphasis on green growth and digital cooperation. Provisions related to clean energy, climate-friendly technologies, and digital trade are expected to help Indian businesses align with global standards while remaining competitive. The Prime Minister noted that this alignment would strengthen India’s role as a trusted global manufacturing and innovation hub.
Calling the FTA a “win-win partnership,” the Prime Minister said it reinforces India’s vision of economic self-reliance while staying deeply connected to global markets. He expressed confidence that the agreement would contribute to sustained economic momentum in 2026 and beyond, setting the tone for a new phase of India–EU relations built on trust, opportunity, and shared prosperity news as reported.
