New Delhi, Jan 27 (IANS) Prime Minister Narendra Modi on Tuesday announced the signing of a free trade agreement (FTA) between India and the European Union, stressing that the landmark partnership between two major economies will create new opportunities for businesses, consumers, and the skilled workforce. 

Addressing a joint press conference at Hyderabad House here with European Commission President Ursula von der Leyen, PM Modi underlined that the agreement – biggest in India’s history -- reflects growing trust, shared values, and a common commitment to peace, stability, and cooperation in an increasingly uncertain global environment.

Under the agreement, tariffs on over 90 per cent of EU goods exports to India will be eliminated or reduced, including steep duties of up to 44 per cent on machinery, 22 per cent on chemicals, and 11 per cent on pharmaceuticals, which will be mostly phased out.

Tariffs on EU beer will be cut to 50 per cent, while duties on chemicals, aircraft, and spacecraft will be eliminated for almost all products.

The EU estimates the deal could double EU exports to India by 2032 and generate annual duty savings of up to 4 billion euros on European products.

The bloc accounts for nearly 17 per cent of India’s total exports, giving Indian businesses a huge market to tap into with easier access under the FTA.

The trade pact also includes 500 million euros in EU support over the next two years to help India cut greenhouse gas emissions and accelerate the green transition. EU exports to India already support around 800,000 European jobs, and the deal is expected to create many more.

The EU said the deal will sharply boost exports to the Indian market and deepen economic ties under a turbulent global trade order. The pact covers economies with a combined population of around 2 billion.

India and the European Union also signed a mobility pact aimed at easing the movement of Indian students, workers, and professionals across EU countries.

Von der Leyen said the successful conclusion of the India-EU free trade agreement, referring to the pact "as the mother of all deals".

"This is only the beginning. We will grow our strategic relationship to be even stronger," she remarked.

Separately, the Summit between the two sides also launched an EU-India Security and Defence Partnership.