NEW DELHI, Jan. 27 (Xinhua) - India and the European Union (EU) on Tuesday announced the conclusion of a bilateral trade deal, saying it would give a big boost to the manufacturing and services sectors and benefit both sides.

"Europe and India are making history today. We have concluded the mother of all deals. 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," visiting European Commission President Ursula von der Leyen said in a post on X.

Indian Prime Minister Narendra Modi, center, welcomes European Council President Antonio Costa, left and European Commission President Ursula von der Leyen before their meeting in New Delhi, India, Tuesday, Jan. 27, 2026. (Photo: AP)

Indian Prime Minister Narendra Modi was quoted as saying that the India-EU trade deal was a "perfect" example of partnership between two major economies.

On Tuesday, Modi was scheduled to hold restricted and delegation-level discussions with von der Leyen and European Council President Antonio Costa.