New Delhi:
India and the European Union have moved closer to formalising one of their most ambitious economic partnerships, with Prime Minister Narendra Modi and top EU leaders reaffirming their commitment to sign the recently concluded India-European Union Free Trade Agreement (FTA) by the end of 2026 and deepen cooperation on connectivity, security and investment.
The renewed momentum emerged during a meeting between PM Modi, European Council President Antonio Costa and European Commission President Ursula von der Leyen on the sidelines of the G7 Summit in Evian, France.
According to the Ministry of External Affairs (MEA), the leaders reviewed progress made since the landmark 16th India-EU Summit held in India earlier this year and welcomed the successful conclusion of negotiations on the long-awaited trade pact. The agreement, which has been under discussion for years, is being viewed as a major milestone in relations between the world’s largest democracy and one of its largest economic blocs.
In a statement, the MEA described the FTA as a “historic achievement” and said the leaders emphasised the need for its swift signing and implementation. They noted that the agreement would create significant opportunities for trade and investment while helping diversify global supply chains at a time of growing geopolitical uncertainty.
The meeting underscored the strategic convergence between New Delhi and Brussels as both sides seek to strengthen economic resilience and reduce vulnerabilities in critical supply chains. Officials indicated that the trade agreement is expected to provide a fresh boost to bilateral commerce, facilitate market access and encourage greater investment flows across sectors.
European Commission President Ursula von der Leyen reinforced that message in a social media post following the meeting. Addressing Prime Minister Modi, she said both sides had been moving rapidly since concluding what she described as the “mother of all trade deals.”
Von der Leyen announced that the India-EU Free Trade Agreement would be signed before the end of the year. She said negotiations would also accelerate on a separate investment agreement aimed at expanding long-term economic cooperation between the two partners.
Beyond trade, the leaders signalled a broader strategic agenda encompassing security, defence and infrastructure connectivity.
A key focus of discussions was the India-Middle East-Europe Economic Corridor (IMEC), a flagship connectivity initiative that seeks to link India with Europe through the Middle East eyen said India and the EU would intensify efforts to advance the corridor, reflecting growing interest in developing alternative trade and transport routes connecting Asia and Europe.
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The project has gained increasing geopolitical significance as countries explore more diversified and resilient trade corridors amid disruptions to traditional supply chains and evolving global economic dynamics.
The three leaders also reviewed progress under the Joint India-EU Comprehensive Strategic Agenda that was endorsed during the January summit. The framework is designed to broaden cooperation across a range of sectors, including technology, clean energy, digital transformation, innovation and sustainable development.
The MEA said the leaders shared the view that the agenda would further strengthen the India-EU strategic partnership and generate transformative outcomes.
Highlighting the broader political dimension of ties, the Indian statement noted that India and the European Union, as two of the world’s largest democratic entities with open-market economies and pluralistic societies, are bound by trust, shared values and a common vision for the future.
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The leaders also exchanged views on key regional and international developments. They welcomed recent developments in West Asia and reiterated their commitment to supporting peace, stability and sustainable development. The discussions reflected a shared interest in shaping what the MEA described as a resilient multipolar global order capable of addressing contemporary geopolitical and economic challenges.
The meeting in Evian comes at a time when India-EU relations are witnessing unprecedented momentum. With trade negotiations concluded, an investment pact under discussion and cooperation expanding into security and connectivity domains, both sides appear determined to translate political goodwill into tangible economic and strategic outcomes.
If the proposed timeline holds, the signing of the India-EU Free Trade Agreement later this year could mark one of the most consequential developments in India’s economic engagement with Europe, while providing a strong foundation for a deeper and more comprehensive partnership in the years ahead.
