New Delhi: India and the European Union are set to mark a major milestone in their bilateral relationship on Tuesday, as leaders from both sides prepare to announce the completion of negotiations on an ambitious free trade agreement, alongside a raft of strategic and security initiatives. The developments come at a time of heightened geopolitical volatility and shifting global trade dynamics.
Prime Minister Narendra Modi will host European Commission President Ursula von der Leyen and European Council President Antonio Costa for high-level talks in New Delhi. The summit follows the participation of the two European leaders as chief guests at India’s 77th Republic Day celebrations at Kartavya Path on Monday, underscoring the growing political warmth between New Delhi and Brussels.
Ahead of the summit, von der Leyen emphasized the global importance of India’s rise, noting that a strong and successful India contributes to global stability, prosperity and security.
Trade deal years in the making
At the heart of the summit is the long-awaited India-EU free trade agreement, often described by officials as the most comprehensive deal ever pursued by the bloc. Once formally concluded, the agreement is expected to reshape economic engagement by unlocking new opportunities across goods, services, investment and technology.
Although negotiations are expected to be declared complete following the talks, the agreement is likely to be formally signed only after several months, as both sides will undertake detailed legal reviews. Trade discussions between India and the EU were first launched in 2007 but stalled in 2013 due to differences over scope and ambition. Talks were revived in mid-2022 amid renewed strategic convergence.
The European Union is currently India’s largest trading partner in goods. During the 2024–25 financial year, bilateral merchandise trade stood at approximately USD 136 billion, with India exporting goods worth around USD 76 billion and importing about USD 60 billion from the EU.
Defence, security and strategic alignment
Beyond trade, the summit is expected to deliver a broad strategic agenda covering defence, security, climate action, critical technologies and the strengthening of a rules-based global order. Officials said India and the EU will unveil a new Security and Defence Partnership aimed at deepening cooperation in military and strategic domains.
The proposed framework is expected to enhance interoperability and create pathways for Indian defence firms to engage with European initiatives, including the EU’s Security Action for Europe (SAFE) programme. SAFE is a €150 billion financial mechanism designed to help EU member states accelerate defence preparedness.
In addition, negotiations are set to begin on a Security of Information Agreement, a move seen as crucial for boosting industrial and technological collaboration in sensitive defence areas.
Mobility, migration and broader cooperation
Another key outcome of the summit is likely to be an agreement facilitating the mobility of Indian professionals to Europe. The framework is expected to streamline cooperation on migration and workforce mobility, building on existing bilateral arrangements that India already has with countries such as France, Germany and Italy.
Several other sector-specific agreements are also expected to be signed, covering areas ranging from clean energy and climate cooperation to digital innovation and emerging technologies.
**Global challenges on the agenda**
The talks will also address pressing international issues, including the ongoing conflict in Ukraine. European officials have indicated that discussions will include concerns over the impact of the war on global stability and the international rules-based system, with particular attention to its broader implications beyond Europe, including the Indo-Pacific region.
While India and the EU do not share identical views on every global issue, both sides acknowledge a strong alignment on core interests such as stability, economic resilience and multilateral cooperation.
With diplomatic engagement intensifying over recent years, the summit is widely seen as a turning point in India-EU relations—one that could anchor a deeper partnership at a time when global alliances and trade structures are undergoing rapid change.
