EUreka India seals landmark trade deal

India and the European Union on Tuesday agreed to significantly deepen their strategic partnership, concluding the negotiations on the long-awaited Free Trade Agreement and signing the first-ever overarching Security and Defence Partnership pact at the 16th India-EU Summit in New Delhi.

The summit capped a high-profile state visit by European Council President Antonio Costa and European Commission President Ursula von der Leyen, who were chief guests at India’s 77th Republic Day celebrations — the first time EU leaders have been accorded the honour. They were accompanied by a senior delegation, including EU foreign policy chief Kaja Kallas and Trade Commissioner Maros Sefcovic.

Prime Minister Narendra Modi, co-chairing the summit with Costa and von der Leyen, said the outcomes reflected the “maturity and ambition” of the India-EU ties, rooted in shared democratic values and a common commitment to a rules-based international order.

“....India has concluded the largest FTA in its history. It is a happy coincidence that on the 27th day of the month, India is entering into this FTA with the 27-member states of the European Union,” Modi said during a joint press conference. He said this historic agreement would facilitate easier access for our farmers and small enterprises to European markets, create new opportunities in manufacturing, and further strengthen cooperation across our services sectors.

The centrepiece of the summit was the successful conclusion of negotiations on the India-EU FTA, described by both sides as a historic milestone. The deal is expected to boost bilateral trade and investment, strengthen diversified supply chains and support sustainable and inclusive growth at a time of global economic uncertainty.

Alongside the FTA, the two sides signed an India-EU Security and Defence Partnership pact, their first comprehensive framework covering cooperation in maritime security, defence industry and technology, cyber and hybrid threats, space and counter-terrorism. Negotiations were also launched on the Security of Information Agreement to facilitate the exchange of classified information.

Notably, both India and the EU also adopted a forward-looking blueprint titled “Towards 2030: India-EU Joint Comprehensive Strategic Agenda”, aimed at accelerating cooperation across five pillars — prosperity and sustainability, technology and innovation, security and defence, connectivity and global challenges, and people-to-people ties.

Addressing the India-EU Business Forum, the leaders urged companies to seize new opportunities created by the FTA and invest ambitiously in critical sectors ranging from clean energy and digital technologies to advanced manufacturing.

On global and regional issues, India and the EU reiterated their support for a reformed and effective multilateral system with the United Nations at its core, including comprehensive reform of the UN Security Council. They also underlined the need for meaningful reform of the World Trade Organisation to strengthen global trade governance.

The two sides emphasised closer cooperation in the Indo-Pacific, recognising the growing interlinkages between European and regional security. They reaffirmed support for a free, open and inclusive Indo-Pacific in accordance with international law, including UNCLOS, and announced forthcoming India-EU consultations on the region.

On Ukraine, the leaders expressed concern over the continuing war and said they would support efforts towards comprehensive, just and lasting peace through dialogue and diplomacy. They also welcomed the recent UN Security Council action on Gaza and reiterated support for a two-state solution, while stressing the need for unhindered humanitarian access.

Both sides strongly condemned terrorism in all forms, including cross-border terrorism, and agreed to enhance cooperation against radicalisation, terror financing and misuse of emerging technologies. They specifically condemned the April 2025 terror attack in Pahalgam and the November 2025 incident near the Red Fort in Delhi.

Climate action and clean energy cooperation featured prominently, with the launch of the India-EU Task Force on Green Hydrogen and plans for the India-EU Wind Business Summit in 2026. The leaders reaffirmed commitment to the Paris Agreement and welcomed closer collaboration on disaster risk management, biodiversity and the circular economy.

People-to-people ties were identified as key enablers of the partnership, with agreement on a comprehensive framework on mobility and plans to launch an education and skills dialogue next year.

Thanking India for the warm hospitality, Costa and von der Leyen invited Prime Minister Modi to Brussels for the 17th India-EU Summit in 2027, underscoring the intent to sustain high-level engagement and translate commitments into tangible outcomes.

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Courtesy: The Tribune -28-Jan-2026