Following the presentation of Union Budget 2026–27, Prime Minister Narendra Modi described it as a step to strengthen India’s economy. He highlighted that the budget is aimed at creating opportunities for the poor, farmers, youth, and women. Alongside, he also referred to the recently signed Free Trade Agreement (FTA) between India and the European Union (EU) as the “Mother of All Deals.”
What is the ‘Mother of All Deals’?
The comprehensive FTA between India and the 27 European countries covers nearly 25% of the global GDP and opens up a significant global market. The agreement aims to reduce or eliminate trade tariffs for most goods and services. India will gradually reduce tariffs on 96.6% of European products, while the EU will provide easier market access for approximately 99% of Indian goods and services.
Opportunities for Indian Businesses
Prime Minister Modi emphasized that this deal will open access to a huge European market, giving Indian producers a chance to expand globally. Key sectors expected to benefit include textiles, sports goods, agricultural products, processed food items, and other industries.
Significance in the Budget
The Prime Minister described the budget as focused on self-reliant India, agriculture, rural development, and job creation. In this context, he highlighted the FTA as a major step in connecting India with global trade and creating new opportunities for the country.
Global Impact
The India-EU FTA is expected to boost both exports and imports, benefiting industries on both sides. Reduction in tariffs on items such as cars, alcohol, textiles, chemicals, and pharmaceuticals could lower product prices and create more trade opportunities.
The India-EU Free Trade Agreement truly deserves the title “Mother of All Deals”, as it opens new economic opportunities for nearly two billion people and strengthens India’s participation in the global economy. According to PM Modi, the agreement will benefit manufacturers, farmers, and youth, paving the way for increased growth and international trade.