India-EU trade deal will be 'mother of all deals', says Piyush Goyal
New Delhi, Jan 16, 2026
Commerce and Industry Minister Piyush Goyal on Friday said the free trade agreement between India and the 27-nation bloc EU, the negotiations for which are at the last leg, will be the "mother of all deals".
The conclusion of talks for the agreement is likely to be announced on January 27.
The President of the European Council, Antonio Luis Santos da Costa, and the President of the European Commission, Ursula von der Leyen, will be on a state visit to India from January 25-27. They are chief guests at the 77th Republic Day celebrations.
"This (India-EU trade pact) will be the mother of all deals," Goyal told reporters here, adding that the proposed agreement will be good and mutually beneficial for both sides.
It will also be a "super deal" for Indian export sectors, he added.
The NDA government has finalised seven trade pacts since 2014: Australia, the UK, Oman, New Zealand, the UAE, the EFTA bloc, and Mauritius.
He also said that the bilateral trade between the two sides is reasonably balanced in goods and services.
It will open huge opportunities for growth, Goyal said, adding that India and the European Union (EU) complement each other and are not in competition.
This agreement will be the biggest pact for India as it includes 27 developed nations, including France, Germany, Spain, Italy, Austria, Belgium, Bulgaria, Finland, Hungary, Ireland, the Netherlands, Portugal, Poland, Denmark, and Sweden.
Commerce Secretary Rajesh Agrawal on Thursday said India and the EU are "very close" to concluding negotiations on the proposed agreement. Discussions are underway to resolve remaining issues so that the deal is ready for announcement during the visit of top EU leadership later this month.
This pact will also be important, as the US' imposition of high tariffs has disrupted global trade flows. India is facing steep 50 per cent tariffs. The FTA is expected to help Indian exporters diversify their shipments. It will also help reduce dependence on China.
The EU market accounts for about 17 per cent of India's total exports, and the bloc's exports to India constitute 9 per cent of its total overseas shipments.
India's bilateral trade in goods with the EU was $136.53 billion in 2024-25 (exports worth $75.85 billion and imports worth $60.68 billion), making the EU India's largest goods trading partner.
As per reports, the EU, with a GDP of about $20 trillion and a population of over 450 million, is a major global trade player, exporting about $2.9 trillion and importing more than $2.6 trillion annually.
India, with a population of 1.4 billion, exported $437 billion in goods and $387.5 billion in services. It imported goods worth $720 billion and services worth $195 billion in 2024-25.
Exports 'highly positive' in January so far: Goyal
Goyal said that the country's exports during the fortnight of January are "highly" positive, global economic uncertainties notwithstanding.
The minister, however, did not disclose the numbers.
The exports and imports figures for January will be released officially on February 15.
The country's merchandise exports grew 1.87 per cent to $38.5 billion in December last year, while an increase in imports led to a marginal widening of the trade deficit to $25 billion.
The country's exports in November 2025 was up about 20 per cent.
Guidelines for phase II of Fund of Funds scheme for startups at advanced stage: Goyal
Goyal said the formulation of guidelines for the operationalisation of the second phase of the Fund of Funds scheme for startups is at an advanced stage.
To strengthen the startup ecosystem, the government constituted a Fund of Funds worth Rs 10,000 crore in 2016 to provide seed capital and enable startups to take calculated risks.
Following the successful utilisation of the first tranche, a second tranche of Rs 10,000 crore was sanctioned in the last Union Budget.
He said the government aims to deploy a significant portion of this fund in deep tech and high-tech sectors such as defence, space, and aerospace to further encourage youth entrepreneurship.
"Draft guidelines are ready... it's at an advanced stage... it will be operationalised soon," Goyal told reporters here.
He said the guidelines will require cabinet nod.
On January 16, the government is celebrating the 10th anniversary of the Startup India initiative. So far over 2 lakh entities are recognised as startups by the Department for Promotion of Industry and Internal Trade (DPIIT).
These entities are eligible for incentives under the startup India action plan.
[Press Trust of India]
