The deal was reached at the 16th EU-India Summit in New Delhi, co-chaired by Indian Prime Minister Narendra Modi and the Presidents of the European Council and the European Commission.

The FTA will open markets for goods on both sides and help reduce reliance on traditional supply chains.

It covers a wide range of policies, from deep tariff cuts on goods and services to expanded access to services and investment markets.

Beyond economics, the two sides will also strengthen cooperation in security, defense, and green technology. Prime Minister Modi said the agreement encompasses an economic area accounting for about 25% of global GDP and one-third of global trade.

European Council President Antonio Costa said that the two sides had achieved tangible progress and established an example of cooperative leadership on global issues.

“With our free trade agreement, our security and defense partnership, and our joint strategic agenda, these outcomes are crucial milestones on the longer path. We look forward to continuing the journey together, as always," said the EC President.