New Delhi: India and the European Union are set to formally announce a long-awaited Free Trade Agreement (FTA) at a high-level summit in New Delhi today, marking a major breakthrough after nearly two decades of intermittent negotiations.
The landmark pact is expected to significantly deepen cooperation between the two sides across trade, defense, technology, and mobility. Officials say the agreement will ease movement for Indian students, professionals, researchers, and seasonal workers, while helping the European Union address growing skill shortages in key sectors.
European Union foreign policy chief Kaja Kallas, who is visiting India, described the partnership as critical for Europe’s economic future.
“India is indispensable to Europe’s economic resilience,” Kallas said last week. “Leaders will endorse concrete deliverables that move our partnership from words to action.”
As part of the summit outcomes, leaders are expected to adopt a new India–EU Comprehensive Strategic Agenda through 2030, setting long-term priorities in clean technologies, pharmaceuticals, semiconductors, and digital cooperation. Negotiations on a Security of Information Agreement are also expected to advance.
Strategic shift amid global trade uncertainty
The timing of the agreement is significant as the global trade environment faces increasing uncertainty. Trade rules are fragmenting, and concerns have resurfaced over potential tariff hikes by the United States under President Donald Trump.
For both India and the EU, the deal is seen as a strategic hedge against future disruptions. Diversifying supply chains and reducing dependence on China have emerged as shared priorities amid rising geopolitical and economic volatility.
India and the European Union have been strategic partners since 2004. FTA negotiations began in 2007 but stalled for years before being relaunched in 2022. Momentum picked up following a visit by the EU College of Commissioners to India in February 2025.
The European Union is currently India’s largest trading partner in goods, with bilateral trade reaching approximately $136 billion in 2024–25. Cooperation between the two sides now spans trade, defense, climate action, digital transition, and people-to-people exchanges.
An India–EU Business Forum is also expected to take place on the sidelines of the summit, bringing together industry leaders to explore new investment and partnership opportunities.