STORY: India and the European Union have finalised a long-pending landmark trade deal, both sides said on Tuesday (January 27) as leaders hailed it as the largest trade deal in India's history that will create a market of 2 billion people.

Speaking at a joint news conference with European Council President Antonio Costa and Commission President Ursula von der Leyen, Indian Prime Minister Narendra Modi said the agreement "will help forge new innovation partnerships and will strengthen supply chains at a global level."

The deal is expected to double EU exports to India by 2032 by eliminating or reducing tariffs in 96.6% of traded goods by value, and will lead to savings of 4 billion euros ($4.75 billion) in duties for European companies, the EU said.

The EU will cut tariffs on 99.5% goods traded over seven years, with tariffs to be cut to zero on Indian marine goods, leather and textile products, chemicals, rubber, base metals and gems and jewellery, India's trade ministry said in a statement.

"We delivered the mother of all deals. We are creating a market of 2 billion people," von der Leyen said. "This is the tale of two giants, the world's second and fourth largest economies, two giants who choose partnership in a true win-win fashion."

The agreement comes days after the EU signed a pivotal pact with the South American bloc Mercosur, following deals last year with Indonesia, Mexico and Switzerland. During the same period, New Delhi finalised pacts with Britain, New Zealand and Oman.

The spate of deals underscores global efforts to hedge against trade with the United States as President Donald Trump's bid to take over Greenland and tariff threats on European nations test longstanding alliances among Western nations.

DESCRIPCIÓN DE IMÁGENES

VIDEO SHOWS: SOUNDBITES FROM INDIAN PRIME MINISTER NARENDRA MODI, EUROPEAN COUNCIL PRESIDENT ANTONIO COSTA AND EUROPEAN COMMISSION PRESIDENT URSULA VON DER LEYEN AT NEWS CONFERENCE FOLLOWING TRADE AGREEMENT

RESENDING WITH COMPLETE SCRIPT

SHOWS: NEW DELHI, INDIA (JANUARY 27, 2026) (EUROPEAN UNION - Access all)

1. INDIAN PRIME MINISTER, NARENDRA MODI, EUROPEAN COUNCIL PRESIDENT, ANTONIO COSTA, AND EUROPEAN COMMISSION PRESIDENT, URSULA VON DER LEYEN, WALKING INTO NEWS CONFERENCE

2. (SOUNDBITE) (Hindi) INDIAN PRIME MINISTER, NARENDRA MODI, SAYING:

“Friends, today, India has concluded the largest ever free trade agreement in its history.”

3. NEWS CONFERENCE IN PROGRESS

4. (SOUNDBITE) (Hindi) INDIAN PRIME MINISTER, NARENDRA MODI, SAYING:

“This FTA (free trade agreement) will boost investment between India and the European Union. It will help forge new innovation partnerships and will strengthen supply chains at a global level, which means that this is not just a trade agreement, it is a new blueprint for shared prosperity.”

5. WHITE FLASH

6. (SOUNDBITE) (Hindi) INDIAN PRIME MINISTER, NARENDRA MODI, SAYING:

“Friends, along with this ambitious FTA, we are also creating a new framework for mobility. This will create new opportunities for Indian students, workers and professionals in the European Union.”

7. WHITE FLASH

8. (SOUNDBITE) (Hindi) INDIAN PRIME MINISTER, NARENDRA MODI, SAYING:

“Friends, we are seeing a lot of turmoil today in the global order. At such a time, the partnership between India and the European Union will strengthen stability in international systems.”

9. (SOUNDBITE) (English) EUROPEAN COUNCIL PRESIDENT, ANTONIO COSTA, SAYING:

“I'm the president of the European Council, but I am also, yes, an overseas Indian citizen (COSTA HOLDS UP INDIAN PASSPORT). Then, as you can imagine, for me, it (trade agreement) has a special meaning.”

10. WHITE FLASH

11. (SOUNDBITE) (English) EUROPEAN COUNCIL PRESIDENT, ANTONIO COSTA, SAYING:

“At a time when the global order is being fundamentally reshaped, the European Union and India stand together as a strategic and reliable partners. Today we are taking our partnership to the next level. As the two largest democracies in the world, we are working hand in hand to deliver concrete benefits for our citizens and to shape a resilient global order that underpins peace and stability, economic growth and sustainable development.”

12. WHITE FLASH

13. (SOUNDBITE) (English) EUROPEAN COMMISSION PRESIDENT, URSULA VON DER LEYEN, SAYING:

“Prime Minister (Modi), distinguished friend, we did it. We delivered the mother of all deals. We are creating a market of 2 billion people. And this is the tale of two giants, the world's second and fourth largest economies, two giants who choose partnership in a true win-win fashion.”

14. WHITE FLASH

15. VON DER LEYEN SAYING THANK YOU, SHAKING MODI’S HANDS / VON DER LEYEN, MODI AND COSTA ENDING NEWS CONFERENCE AND WALKING AWAY