From Manmohan to Modi: Trade deals from 1991 to 2026 that led up to India-EU FTA

Concluded amid rising protectionism and tariff wars, the India–EU Free Trade Agreement signals a decisive shift toward rules-based partnerships in a fractured global economy.

India and the European Union concluded a historic Free Trade Agreement on Tuesday, 27 January, marking the end of nearly two decades of negotiations and creating the world's largest bilateral trade bloc. The deal, announced jointly by Prime Minister Narendra Modi and European Commission President Ursula von der Leyen, encompasses 2 billion people, represents 25% of global GDP, and creates a combined market worth $27 trillion.

Dubbed the 'Mother of All Deals' by both leaders, the agreement represents a bipartisan triumph spanning multiple Indian governments, from Dr Manmohan Singh's initial negotiations in 2007 to their conclusion under Prime Minister Modi nearly two decades later.

The road to this watershed moment, however, began decades earlier. From Indira Gandhi's early steps towards Asia-Pacific trade cooperation to P.V. Narasimha Rao's liberalisation reforms and Atal Bihari Vajpayee's pioneering bilateral agreements, India's trade architecture has been built through the vision and persistence of successive governments.

The Foundations: From Bangkok to Brussels

The road to Brussels began decades ago. In the mid-1970s, India joined the Bangkok Agreement, a preferential trade arrangement that marked one of India's earliest steps toward Asia-Pacific trade cooperation. In 1995, Prime Minister P.V. Narasimha Rao signed India into the World Trade Organisation, a watershed moment that forced structural reforms and opened India's services sector to global competition. His Look East Policy in 1991 shifted India's entire orbit toward Southeast Asia.