India and the European Union have reaffirmed their commitment to sign the long-awaited India–EU Free Trade Agreement (FTA) by the end of 2026, while also agreeing to deepen cooperation in security, defence and strategic connectivity initiatives.
The renewed momentum in ties emerged during a meeting between Prime Minister Narendra Modi, European Commission President Ursula von der Leyen and European Council President Antonio Costa on the sidelines of the G7 Summit in Evian, France, on June 17. The discussions reflected the growing strategic convergence between New Delhi and Brussels following the successful conclusion of negotiations on the India–EU Free Trade Agreement earlier this year.
FTA to Be Signed by End of 2026
Following the meeting, President von der Leyen announced that both sides are moving quickly to formalise the agreement and expand economic cooperation further.
“Since we have concluded the mother of all trade deals, we have been moving fast to deliver on our commitments. We will sign the Free Trade Agreement by the end of the year. And accelerate work on an investment agreement,” she said.
India and the European Union had announced the conclusion of negotiations for the ambitious trade pact during their summit in New Delhi earlier this year. The agreement is widely viewed as one of the most significant economic arrangements between India and a major global trading bloc, with the potential to boost trade, investment and supply-chain resilience.
According to the Ministry of External Affairs (MEA), the leaders stressed the importance of the swift signing and implementation of the agreement, describing it as a historic achievement in bilateral relations.
“The leaders emphasised the recent conclusion of negotiations for the India-EU free trade agreement as a historic achievement,” the MEA said.
Focus on Trade, Investment and Supply Chains
The leaders reviewed progress made since the 16th India–EU Summit and discussed ways to translate the newly concluded negotiations into tangible economic gains.
According to the Indian government, the agreement is expected to unlock significant opportunities for trade and investment while helping diversify global supply chains at a time of increasing geopolitical and economic uncertainty. Officials on both sides highlighted the importance of building more resilient and trusted supply-chain networks amid evolving global trade dynamics.
The European Union remains India’s largest trading partner in goods. During the 2024–25 financial year, bilateral trade in goods between India and the EU stood at approximately USD 136 billion. India exported goods worth around USD 76 billion to the bloc, while imports from the EU totalled about USD 60 billion.
Security and Defence Cooperation to Deepen
Beyond economic engagement, the discussions also focused on expanding cooperation in security and defence.
President Von der Leyen said the two sides would intensify collaboration in strategic and security-related domains as both partners navigate an increasingly complex geopolitical environment.
“We will also step up security & defence cooperation,” she said.
The commitment reflects a broader effort by India and the European Union to strengthen strategic ties and enhance cooperation on issues ranging from maritime security and emerging technologies to geopolitical stability.
IMEC Emerges as Key Connectivity Priority
Another major focus of the discussions was the India–Middle East–Europe Economic Corridor (IMEC), a flagship connectivity initiative designed to link India with Europe through the Middle East via ports, rail networks and logistics infrastructure.
Von der Leyen said India and the EU would work together to accelerate the project.
“We will also step up security & defence cooperation. And join forces for better connectivity by advancing IMEC, the India-Middle East-Europe Corridor,” she said.
The corridor has gained growing strategic significance as countries seek alternative trade and transport routes to strengthen economic resilience and reduce dependence on traditional supply chains.
Strategic Partnership Gains Momentum
The leaders also reviewed progress under the Joint India–EU Comprehensive Strategic Agenda adopted earlier this year, which aims to broaden cooperation across technology, digital transformation, innovation, clean energy and sustainable development.
Prime Minister Modi described the discussions as an opportunity to further strengthen bilateral ties and address shared global challenges.
“Our growing cooperation can play an important role in strengthening peace, stability and prosperity in today’s global environment,” he said.
The meeting underscored the growing momentum in India–EU relations at a time when both sides are seeking closer economic integration, stronger strategic coordination and greater cooperation on global challenges. With the trade agreement now entering the final stage before formal signing, the partnership appears poised for a significant new chapter in economic and geopolitical engagement.
