Prime Minister Narendra Modi on Tuesday pitched a “double engine” growth strategy amid what he described as turmoil in the global environment, as India and the European Union signed a landmark free trade agreement (FTA). Addressing the India–EU Business Forum, Modi said the partnership between the two sides would help bring stability to the global economic order.
Calling the pact the “biggest free trade agreement in India’s history,” Modi described it as a blueprint for shared prosperity. He said the alignment between India and the EU was built on common values as market economies, shared priorities for global stability, and strong people-to-people ties. “On this foundation, we are taking our partnership to new heights,” he said.
Highlighting the scale of existing economic ties, the prime minister noted that India–EU trade has doubled over the past decade to €180 billion. More than 6,000 European companies operate in India, with EU investments exceeding €120 billion, while around 1,500 Indian companies are present across the EU. Indian investments in Europe, he added, have reached nearly €40 billion.
Modi said cooperation between Indian and European firms now spans sectors such as research and development, manufacturing, and services. He urged businesses on both sides to transform the economic relationship into a “whole-of-society partnership,” adding that the newly finalised comprehensive FTA would accelerate this shift.
Detailing the sectoral impact of the agreement, Modi said it would provide easier access to EU markets for India’s labour-intensive exports, including textiles, gems and jewellery, auto components, and engineering goods. Agricultural and marine products—such as fruits, vegetables, processed foods, and seafood—would also see new opportunities, directly benefiting farmers and fishermen.
The services sector is expected to gain as well, with IT, education, traditional medicine, and business services among the key beneficiaries. The agreement, finalised amid heightened global tensions and widespread trade disruptions, is expected to significantly deepen India–EU economic engagement and open new avenues for cooperation across multiple sectors.
‘Global Turmoil Calls for Stability’: PM Modi Makes ‘Double Engine’ Growth Pitch After Historic India–EU FTA
