Foreign leaders, business heads hail India-EU FTA as historic, geopolitically decisive

Foreign leaders across Europe on Thursday welcomed the conclusion of the India–European Union Free Trade Agreement (FTA), describing it as historic, strategic and critical for economic resilience amid a fragmenting global trade order.

German Chancellor Friedrich Merz called the agreement a “very positive sign” and urged its swift implementation to spur growth and competitiveness.

India and the European Union had on Tuesday agreed to significantly deepen their strategic partnership and concluded the negotiations of the long-awaited Free Trade Agreement. The deal is expected to boost bilateral trade and investment, strengthen diversified supply chains and support sustainable and inclusive growth at a time of global economic uncertainty.

At the same time, Finland’s President Alexander Stubb termed it the largest trade deal ever concluded by either side, saying it would significantly deepen economic and political ties.

Swedish Prime Minister Ulf Kristersson said the pact marked the beginning of a new era of cooperation, strengthening prosperity, competitiveness and security through trade.

Austria’s Chancellor Christian Stocker said the agreement creates a free trade zone benefiting nearly two billion people, calling it a major step towards Europe’s resilience in a rapidly changing global order.

Denmark’s Foreign Minister Lars Løkke Rasmussen described the deal as geopolitically crucial, highlighting the first-mover advantage in a combined India–EU market. French Minister Delegate for Foreign Trade Nicolas Forissier said the accord was “not an agreement like the others,” underscoring its political significance.

Reflecting the broader strategic context, members of the European Parliament said the FTA signals the EU’s intent to diversify partnerships and enhance strategic autonomy, with India emerging as a central global actor.

International media also highlighted the agreement’s scale and timing.

The New York Times said the deal brings together the world’s largest economic bloc and the fastest-growing major economy after nearly two decades of negotiations while the Washington Post described it as a historic accord reached amid rising global trade uncertainty.

Global business leaders operating in India responded with optimism. Jürgen Westermeier, President and Managing Director for India and South Asia at Airbus and President of the Federation of European Business in India, called the FTA a “big moment” after 20 years of talks, saying it would accelerate opportunities on both sides.

Wouter van Wersch, President of Airbus International, termed it a “fantastic day,” reaffirming Airbus’ long-term commitment to Make in India, technology transfer, defence and advanced manufacturing.

Jan Noether, Director General of the Indo-German Chamber of Commerce, described the pact as the “mother of all free trade agreements,” bringing together nearly a quarter of global GDP.

Sebastian Stiezel, President of the Berlin Chamber of Commerce, said India is no longer a market of the future but a market of the present. Senior executives from German automakers Volkswagen, BMW and Mercedes-Benz also welcomed the deal for its export and supply-chain potential.

Policy experts echoed this optimism. Richard Rossow of the Center for Strategic and International Studies said the agreement combines strong optics with substantive depth.

Michael Kugelman of the Atlantic Council called it the “right deal at the right time,” while geopolitical strategist Velina Tchakarova described it as one of the most consequential geoeconomic agreements of the decade.