Helsinki [Finland], January 28 (ANI): Finnish President Alexander Stubb welcomed the EU-India Free Trade Agreement (FTA), calling it a historic milestone and a major step toward strengthening economic and political ties between Europe and India.

'The EU-India Free Trade Agreement is historic. It is the largest trade deal ever concluded by either side. This will further intensify our economic and political ties with India,' Stubb wrote in a post on X.

Highlighting the wider global context, he added, 'In these times, it is important for both the EU and Finland to strengthen partnerships all over the globe.'

https://x.com/alexstubb/status/2016100100821361013?s=20

The remarks came following the announcement by India and the European Union on Tuesday that negotiations for the long-pending FTA had concluded. Under the deal, the EU will remove tariffs on 99.5 per cent of Indian exports, with most duties dropping to zero immediately once the pact comes into force. India has agreed to provide tariff concessions covering 97.5 per cent of the traded value between the two economies.

The joint announcement was signed by Commerce Minister Piyush Goyal and European Commissioner for Trade and Economic Security Maros Sefcovic, in the presence of Prime Minister Narendra Modi, European Commission President Ursula von der Leyen, and European Council President Antonio Costa.

Von der Leyen described it as 'the mother of all deals,' saying, 'We are creating a market of 2 billion people. This is a tale of two giants -- the world's second- and fourth-largest economies. Two giants who choose partnership in a true win-win fashion. A strong message that cooperation is the best answer to global challenges.'

The agreement brings to an end a negotiation process that began in 2007. With bilateral trade already exceeding USD 136 billion, the pact was described as 'one of the biggest' bilateral deals globally.

The FTA was formally announced during a joint press briefing in New Delhi attended by PM Modi, von der Leyen and Costa. PM Modi said India-EU cooperation would help stabilise a turbulent global order, while EU leaders praised India's hospitality and diversity during the Republic Day celebrations, where they were chief guests.

The EU later stated that the agreement would save approximately 4 billion euros annually in duties, as India has agreed to reduce, and in some cases eliminate, tariffs on nearly 97 per cent of goods imported from Europe.

Following the announcement, PM Modi described India-EU ties as the global 'double engine of growth' and urged business leaders to take the next steps in advancing bilateral trade. 'The ball is in your court,' PM Modi said, adding that India and the EU would help stabilise the world order amid ongoing global turmoil.

Earlier, PM Modi welcomed the pact, saying it would 'drive trade, investment and innovation while strengthening our strategic relationship.' 'It reflects our shared resolve to shape a stable, prosperous and future-ready economic relationship,' he said in a post on X.

PM Modi also called the agreement a 'perfect' example of partnership between two major economies and later held restricted and delegation-level talks with von der Leyen and Costa on the sidelines of the 16th India-European Union Summit.

Separately, von der Leyen hailed the deal, saying history had been made. 'We have created a free trade zone of two billion people, with both sides set to benefit. This is only the beginning. We will grow our strategic relationship to be even stronger,' she wrote on X.

The trade agreement comes amid fresh tariff pressures on both India and Europe from the Donald Trump-led US administration. (ANI)