Prime Minister Narendra Modi’s visionary Make in India initiative receives a historic lift from the newly concluded India-EU Free Trade Agreement (FTA). Finalized on January 27, 2026, this “mother of all deals” opens EU markets to Indian exports and attracts massive investments, shielding India from global tariff uncertainties.
Landmark Tariff Cuts Fuel Exports
The EU will eliminate tariffs on 99.5% of Indian export items by trade value, targeting textiles, leather, gems, jewelry, and marine products. Indian apparel and textile exports, currently facing 12-16% duties, are projected to surge from $7 billion to $40 billion. Auto components and pharmaceuticals also gain duty-free access, supercharging India’s manufacturing edge.
Job Creation and Manufacturing Revival
This FTA could generate 6-7 million jobs in labor-intensive sectors like textiles, footwear, and leather, aligning perfectly with Modi’s employment goals. Gems and jewelry trade may double to $10 billion in three years, while European firms eye India for supply chain shifts, bolstering Make in India. Services mobility eases IT, engineering, and healthcare professional flows to the EU.
Strategic Wins Amid Global Shifts
Covering 25% of global GDP, the deal diversifies India’s markets beyond US tariffs and China restrictions. EU exports to India double by 2032 via tariff reductions on machinery, chemicals, pharma, and autos (from 110% to 10%). Sensitive sectors like dairy, rice, and poultry remain protected for Indian farmers.
Modi’s Diplomacy Delivers Viksit Bharat
PM Modi hailed it as India’s largest FTA, easing market access for farmers, SMEs, and innovators. Expected implementation within a year post-legal review, this pact cements India’s rise as a manufacturing powerhouse. Under Modi’s leadership, it’s a game-changer for economic self-reliance and global partnerships.
