In a powerful address marking the conclusion of the “mother of all deals,” Prime Minister Narendra Modi highlighted that India’s energy sector alone presents a $500 billion investment opportunity for global partners.
Speaking on Tuesday, January 27, 2026, during the inauguration of India Energy Week and the 16th India-EU Summit, the Prime Minister linked the newly finalized Free Trade Agreement (FTA) to India’s massive infrastructure ambitions. He emphasized that the deal serves as a “blueprint for shared prosperity,” inviting European investors to participate in India’s journey toward becoming the world’s leading refining and green energy hub.
1. The $500 Billion Energy Vision
While the FTA covers all sectors of the economy, PM Modi singled out the energy value chain as the heart of India’s development goals.
- Refining Powerhouse: India aims to expand its refining capacity from 260 MTPA to 300 MTPA, with the goal of becoming the world’s largest refining hub.
- Oil & Gas Targets: The government is targeting $100 billion in investments specifically in the oil and gas sector by 2030.
- Exploration Expansion: India has opened 1 million square kilometers for exploration, including new hydrocarbon hopes in the Andaman and Nicobar basin.
- LNG Infrastructure: A ₹70,000-crore shipbuilding program for LNG carriers and a massive expansion of city gas distribution networks are currently underway.
2. Synergy with the India-EU FTA
The Prime Minister noted that the FTA “complements” India’s existing trade deals with the UK and EFTA, creating a unified gateway for Western capital.
| Key Benefit | Strategic Impact |
| Market Access | Over 99% of Indian exports by value will receive preferential entry into the EU. |
| Manufacturing Boost | Zero-duty imports of high-end European machinery will lower the cost of setting up “Make in India” factories. |
| Supply Chain De-risking | The deal positions India and the EU as “trusted global trade partners,” accounting for 25% of global GDP. |
| Green Transition | The €500 million EU climate grant directly supports the $500 billion energy opportunity by funding decarbonization. |
3. “Make in India, Scale with India”
PM Modi issued a direct call to action for the 500 global energy leaders and CEOs present in Goa and New Delhi:
- Digital & Physical Infrastructure: He invited investment in the “entire LNG value chain,” from terminals and regasification to the national pipeline network.
- Reforms Express: The PM highlighted the Oilfields (Amendment) Act 2025, which introduced single petroleum leases and time-bound approvals to create a “transparent, investor-friendly environment.”
- Youth & Services: He congratulated India’s youth, noting that the FTA would create millions of jobs in high-value services and manufacturing over the next decade.
Conclusion: A Stabilizing Force
By concluding a deal that had been stuck for 18 years, PM Modi framed the India-EU partnership as a “shield against global economic uncertainty.” The $500 billion opportunity isn’t just a number—it’s the estimated capital required to fuel India’s transition from energy security to energy independence. For the European Union, the FTA provides the first-ever “deep-access” seat at the table of the world’s fastest-growing major economy.
