ISTANBUL

India's Prime Minister Narendra Modi on Tuesday said the South Asian nation has reached a free trade agreement (FTA) with the EU.

“Yesterday (Monday), a significant agreement was reached between India and Europe,” Modi said in a virtual address to Indian Energy Week, referring to the conclusion of the FTA negotiations with the EU.

The statement came ahead of Modi's talks with visiting European Commission President Ursula von der Leyen and EU Council President Antonio Costa in the capital New Delhi.

Modi said the deal would account for 25% of global GDP and one-third of global trade.

“People in the world are discussing it as a ‘mother of all deals’,” he said.

“This is an excellent example of coordination between the two economies of the world,” Modi added.

Meanwhile, Indian Commerce Secretary Rajesh Agrawal said on Monday that India and the EU had concluded negotiations on the FTA, which has been finalized.

The agreement is expected to be signed later this year and may come into force early next year, Agrawal noted.

According to the Indian government, the EU remains India’s largest trading partner for goods, with bilateral trade volume reaching approximately $136 billion in 2024-25.