Finland's President Alexander Stubb has hailed the newly concluded EU-India Free Trade Agreement (FTA) as a historic milestone, describing it as the largest trade deal ever negotiated by either side.

In a post on X, Stubb emphasised that the pact would significantly intensify economic and political ties between Europe and India. He underscored the importance of bolstering global partnerships amid challenging times, stating that such alliances are vital for both the EU and Finland.

The agreement marks the end of negotiations that began in 2007, following an announcement on Tuesday by Indian Commerce Minister Piyush Goyal and European Commissioner for Trade and Economic Security Maros Sefcovic.

The joint statement was made in the presence of Prime Minister Narendra Modi, European Commission President Ursula von der Leyen, and European Council President Antonio Costa. This development was formally unveiled during a press briefing in New Delhi on the sidelines of the 16th India-EU Summit.

Under the terms of the FTA, the EU will eliminate tariffs on 99.5 per cent of Indian exports, with most duties reduced to zero upon entry into force. India, in turn, has committed to tariff concessions covering 97.5 per cent of the traded value between the two economies, including reductions or eliminations on nearly 97 per cent of goods imported from Europe. The EU estimates this will save approximately €4 billion annually in duties.

European Commission President von der Leyen described the deal as "the mother of all deals," highlighting the creation of a market spanning two billion people—the world's second- and fourth-largest economies.

She portrayed it as a "win-win" partnership between two giants, sending a strong message that cooperation trumps global challenges. Von der Leyen further noted on X that history had been made, with the free trade zone poised for even deeper strategic ties.

Prime Minister Modi echoed this optimism, terming India-EU relations the global "double engine of growth." He urged business leaders to seize opportunities, declaring "the ball is in your court" to advance bilateral trade.

PM Modi welcomed the pact as a driver of trade, investment, and innovation, reflecting a shared resolve for a stable and prosperous economic relationship. He also held restricted and delegation-level talks with von der Leyen and Costa during the summit.

The agreement arrives against a backdrop of escalating tariff pressures from the Donald Trump-led US administration on both India and Europe. Bilateral trade already surpasses $136 billion, positioning this as one of the largest deals globally. EU leaders praised India's hospitality and diversity during Republic Day celebrations, where they served as chief guests.

Stubb's remarks from Helsinki align with broader sentiments, reinforcing the deal's role in stabilising a turbulent world order. Modi similarly asserted that India-EU cooperation would contribute to global stability amid ongoing turmoil. The pact not only promises economic gains but also signals deepening geopolitical alignment between the two regions.

Based On ANI Report