Prime Minister Narendra Modi on Tuesday said India and the European Union are entering a new era of partnership, marked by unprecedented alignment between the world’s two largest democratic powers, as he addressed the India–European Union Business Forum at Bharat Mandapam in New Delhi.
Welcoming the President of the European Council, the President of the European Commission and business leaders from both sides, the Prime Minister said the visit of EU leaders to India was not a routine diplomatic engagement but a signal of a new phase in India–EU relations. He highlighted three key developments — EU leaders attending India’s Republic Day celebrations as Chief Guests, the conclusion of the largest free trade agreement in India’s history between India and the EU, and the organisation of the Business Forum with wide CEO participation — as symbols of this growing alignment.
PM Modi said the partnership between India and the EU is rooted in shared values as market economies, common priorities for global stability and strong people-to-people connections. He noted that over the last decade, bilateral trade has doubled to 180 billion euros, with more than 6,000 European companies operating in India and EU investments exceeding 120 billion euros. At the same time, around 1,500 Indian companies are present in the EU, with Indian investments there nearing 40 billion euros. He said cooperation between Indian and European companies now spans research and development, manufacturing and services.
Calling for a ‘Whole of the Society Partnership’, the Prime Minister said the comprehensive FTA would provide easier market access for India’s labour-intensive products, including textiles, gems and jewellery, auto components and engineering goods. He said new opportunities would also emerge for fruits, vegetables, processed food and marine products, benefiting farmers and fishermen. The services sector, particularly IT, education, traditional medicine and business services, would also gain from the agreement.
Against the backdrop of global economic uncertainty, PM Modi said the FTA sends a clear and positive message to the global business community and serves as an invitation to build a reliable, future-oriented partnership. He expressed confidence that businesses on both sides would fully utilise the opportunities created by the agreement.
Outlining priorities for deeper cooperation, the Prime Minister said India and the EU must work together to reduce external dependencies in areas where trade, technology and critical minerals are increasingly being weaponised. He called for collaboration in electric vehicles, batteries, semiconductors, APIs and resilient supply chains. He also urged greater partnership in defence industries and frontier technologies such as space, telecom and artificial intelligence.
Emphasising the shared commitment to a clean and sustainable future, PM Modi said both sides should expand joint research and investment in green hydrogen, solar energy and smart grids, and work together on small modular reactors and sustainable mobility. He added that cooperation should also be strengthened in water management, circular economy and sustainable agriculture.
Saying that the responsibility now lies with the business community, the Prime Minister urged industry leaders to take the next steps in deepening the partnership. He said mutual cooperation would help build trust, scale and shared prosperity, and called on India and the EU to combine their strengths to act as a double engine of growth for the world.
