Modi calls India-EU trade pact a landmark deal
The India-EU free trade agreement is expected to strengthen ties, opening new opportunities and deeper cooperation across multiple sectors.
Prime Minister Narendra Modi on Tuesday hosted the 16th India–European Union Summit in New Delhi, marking what officials described as a defining moment in the evolution of ties between the two sides. The high-level meeting brought together European Commission President Ursula von der Leyen and European Council President Antonio Costa, reflecting the growing political and strategic weight of the partnership.
At the heart of the summit was the long-anticipated announcement that India and the EU have concluded negotiations on their Free Trade Agreement (FTA). Commerce Secretary Rajesh Agrawal confirmed that talks on the deal, which has been years in the making, have finally wrapped up. The formal announcement of the conclusion of negotiations is expected to be made during the summit itself, a move being seen as a major breakthrough in India–EU relations.
Officials said the signing of the FTA will take place in around six months, after the legal scrubbing process is completed on both sides. Once signed, the agreement is expected to come into force sometime next year. For policymakers and businesses alike, this timeline signals that tangible economic benefits may soon begin to flow from the deal.
The FTA is widely expected to bring a qualitative shift in the overall relationship between India and the European Union. Beyond reducing tariffs and easing market access, the agreement aims to deepen cooperation across a wide range of sectors, including manufacturing, services, digital trade, pharmaceuticals, renewable energy, and supply chains. Indian officials see the pact as a gateway to increased exports, investment, and job creation, while European leaders view it as a chance to strengthen economic engagement with one of the world’s fastest-growing major economies.
Trade, however, was only one pillar of a much broader agenda discussed at the summit. Leaders focused extensively on defence and security cooperation, climate change, critical and emerging technologies, and the shared commitment to strengthening a rules-based global order. Officials indicated that the two sides are set to unveil a defence framework pact, along with a new strategic agenda that will guide cooperation in the coming years.
The timing of this renewed partnership is significant. Europe is increasingly looking to diversify its economic and strategic relationships, seeking to reduce its dependence on both the United States and China. In this context, India is seen as a natural partner — a large democracy, a key Indo-Pacific player, and an economy with expanding global influence. For New Delhi, closer ties with the EU align with its own push to broaden strategic partnerships and secure resilient supply chains.
Prime Minister Modi, in his remarks, underlined the importance of trust, shared values, and long-term cooperation between India and the EU. He described the trade agreement as a foundation for deeper engagement, one that goes beyond numbers and charts to touch the lives of people, workers, entrepreneurs, and consumers on both sides.
European leaders echoed this sentiment, emphasizing that the partnership with India is not merely transactional but strategic in nature. They highlighted cooperation on clean energy, climate action, and digital innovation as areas where joint efforts could deliver global benefits.
As the summit concluded, there was a clear sense that India–EU ties are entering a new phase. While the legal and procedural steps toward signing the FTA still lie ahead, the political signal sent in New Delhi was unmistakable. Both sides are betting on each other at a time of global uncertainty, aiming to build a partnership that is resilient, forward-looking, and rooted in shared interests.
For businesses, policymakers, and citizens alike, the outcome of the 16th India–EU Summit represents more than just another diplomatic milestone. It signals a growing convergence between two major global actors, determined to shape their future together in an increasingly complex world.