"Mother of all deals" India and the EU sign a historic deal

On 27 January 2026, during the 16th India-EU Summit in New Delhi, a historic Free Trade Agreement (FTA) between India and the European Union (EU) was signed, one of the notable deals India has ever signed. Ursula von der Leyen, the President of the European Commission, referred to the deal as "Mother of all deals".

FTA signed between India and the European Union (EU)

The European Union (EU) and India announced a trademark trade deal that is going to benefit a huge number of people and restart a new friendship and tie. On 27 January 2026, at the 16th India-EU Summit in New Delhi, the deal, which has been referred to as the "Mother of all deals", was signed.

The EU - India trade deal has been confirmed today.

The largest trade bloc in the world, with 2 billion people, now exists.

For both countries, it is a strategic Agreement to decouple from authoritarian countries such as America and Russia. pic.twitter.com/mxxw5bko2b

— NXT EU (@NXT4EU) January 27, 2026

In 2007, the EU and India began talks, which were restrained due to certain tensions, but both sides have formally once again thought about it amid tensions with the US and its tariff threats.

The deal will allow free trade of goods between the bloc of 27 European countries and the world's largest democracy. The deal will strengthen relations and active participation in finding ways to cope with the heavy tariffs levied by the US.

The deal will also eliminate or reduce tariffs on several goods, increase market accessibility for products like textiles, leather, marine products, and jewellery. Ursula von der Leyen, the President of the European Commission, said, “We did it… we delivered the mother of all deals.”

After 18 Years of Silence, Why Does the EU Want a Trade Deal with India Now?

In 2023, EU removed India from its trade preference system. Today, same EU wants a comprehensive free trade agreement after negotiations remained stuck for almost two decades!

Tariffs imposed by US… pic.twitter.com/YktyZpF54D

— Praffulgarg (@praffulgarg97) January 24, 2026