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India–European Union seal landmark Free Trade Agreement

  • Covers nearly 25% of global GDP

  • Represents about one-third of total global trade

New Delhi – India and the European Union formally concluded a landmark Free Trade Agreement (FTA) on 27January. Prime Minister Narendra Modi announced the deal in the presence of European Council President António Costa and European Commission President Ursula von der Leyen. Widely described as the ‘Mother of All Deals,’ the agreement is being regarded as historic for India. Prime Minister Modi stated that the India–EU pact can rightly be called ‘the mother of all agreements.’

“A remarkable example of coordination between two major global economies” – Prime Minister

Prime Minister Modi said the India–EU trade agreement will give a strong boost to manufacturing in India and significantly expand the services sector and allied industries. The FTA is expected to further strengthen global business and investor confidence in India, while also reinforcing international supply chains.

Several key Indian industries — including textiles, gems, and jewellery — are expected to benefit substantially from the agreement. The deal is also projected to create major opportunities for millions of people across India and European nations. Calling it an extraordinary instance of cooperation between two of the world’s leading economies, the Prime Minister highlighted that the agreement represents nearly 25% of global GDP and roughly one-third of global trade.

“European Union is financing a war against itself” – US Treasury Secretary criticizes deal

U.S. Treasury Secretary Scott Bessent criticized the India–EU Free Trade Agreement, alleging that “the European Union is financing a war against itself.” He said, “Consider what happened last week. We imposed tariffs on India, and today Europe is entering into a trade agreement with them. Russia sends crude oil to India. It is refined there and then sold to Europe. Technically, Europe is buying refined products, but it is Russian oil. They (European countries) are funding a war against themselves,” Bessent claimed.

Editorial Perspective

Does this sequence not expose the limits of America’s credibility ? – First, an attempt to impose unilateral agreements on India, then, efforts to malign India and isolate it diplomatically.  When these attempts fail, it is criticising the European Union for engaging constructively with India. This pattern raises a serious question about the consistency and usefulness of America’s approach.

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