India-EU Trade Deal LIVE: PM Modi Confirms Agreement, Calls It ‘Mother of All Deals’

Prime Minister Narendra Modi is set to hold restricted and delegation-level talks with European Commission President Ursula von der Leyen and European Council President Antonio Costa on the sidelines of the 16th India–European Union Summit today.

The summit is expected to be historic, as both sides are likely to announce a long-awaited Free Trade Agreement (FTA) following the conclusion of negotiations on Republic Day.

Commerce Secretary Rajesh Agrawal confirmed on Monday that India and the EU have successfully wrapped up talks and will formally announce the agreement on Tuesday, January 27.

Key Developments

India-EU Trade Deal Announcement
Rajesh Agrawal said negotiations have been completed and the formal announcement of the FTA will be made today.

EU Chief’s Republic Day Message
European Commission President Ursula von der Leyen, who was among the chief guests at India’s Republic Day parade on January 26, shared a clip from the ceremony on social media platform X, writing:
“A successful India makes the world more stable, prosperous and secure. And we all benefit.”

When Will the Deal Take Effect?
Although the agreement will be announced today, it is expected to come into force next year. Agrawal said the legal review of the text will take five to six months, followed by formal signing.

“Legal scrubbing of the text will take 5–6 months; formal signing will be done after that,” he said.

US Reaction to the Agreement
The India-EU deal comes as trade negotiations between India and the United States remain ongoing. US Treasury Secretary Scott Bessent expressed dissatisfaction with the development in a recent interview, alleging that European countries are indirectly financing a war by purchasing refined Russian oil products from India.