&imwidth=800&imheight=600&format=webp&quality=medium "‘Blueprint for shared prosperity’: How India-EU FTA redefines defence and security cooperation")
India and the European Union has signed the long-awaited Free Trade Agreement (FTA) on Tuesday (Jan 27). It has been described as the “mother of all deals” by European Commission President Ursula von der Leyen. Indian Prime Minister Narendra Modi hailed the deal as a “major opportunity” for businesses of both sides and said it would deepen ties between India and Europe. This new agreement elevates India's status to a level of security cooperation previously held only by Japan and South Korea in Asia. In defence, the agreement moves from simple procurement to co-development and co-production of military hardware.
What India-EU deal tells about defence sector and security cooperation
Both EU and India will undertake joint naval patrols along critical trade routes, including the Red Sea and the Gulf of Guinea, to counter piracy and hybrid threats.
The Indian firms will be eligible to participate in PESCO (Permanent Structured Cooperation) projects, allowing them to collaborate on developing advanced European defence capabilities. Leaders launched negotiations for a Security of Information Agreement (SOIA) to enable the secure exchange of classified intelligence and technical data.
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Why is it called “Mother of All Deals”
Prime Minister Modi described the FTA as a "blueprint for shared prosperity" that represents 25 per cent of global GDP and one-third of global trade. The EU will eliminate or reduce tariffs on over 90-97 per cent of goods. Indian exports in textiles, gems, and leather will gain significant access, while India will slash duties on European cars, machinery, and spirits (e.g., wine tariffs dropping from 150% to 75% initially). The deal includes India's most ambitious commitments on financial and maritime services ever offered to a trade partner. The agreement creates a massive market of nearly 2 billion consumers with new agreements focusing on semiconductors, 6G, and Artificial Intelligence. Both countries reaffirmed the India-Middle East-Europe Economic Corridor (IMEC) as a strategic tool for green and digital connectivity.
What India-EU deal tells about mobility and global Issues
The new agreement facilitates the movement of Indian professionals, researchers, and students to Europe, providing a legal path for skilled labour while addressing irregular migration. Both leaders emphasized a commitment to the rules-based international order, specifically regarding the Indo-Pacific, Ukraine, and the Middle East.
