India, EU Set to Announce Conclusion of Historic Free Trade Agreement Talks
India and the European Union are set to announce the successful conclusion of negotiations for a long-pending Free Trade Agreement (FTA), marking a major milestone in bilateral relations after nearly two decades of intermittent talks.
Commerce Secretary Rajesh Agrawal confirmed on Monday that official-level negotiations had been completed and that both sides were ready to formally declare the conclusion of talks on January 27.
Senior officials in the Commerce Ministry said discussions were finalised last week, with both sides approving the broad contours of the agreement over the weekend. The final legal text is now being prepared and will be vetted by legal teams before being formally adopted.
Part of a Broader Strategic Package
The FTA is expected to be signed alongside several other major agreements during the India-EU summit scheduled for Tuesday between Prime Minister Narendra Modi, European Commission President Ursula von der Leyen, and European Council President Antonio Costa.
Officials said the summit will also see the announcement of a Security and Defence Partnership, energy cooperation framework, and a mobility agreement covering skilled professionals and students.
Prime Minister Modi said the presence of the EU’s top leadership reflects the growing depth of ties between India and Europe and their shared commitment to democratic values and global stability.
EU Leaders Highlight India’s Global Role
During their visit, Ms. von der Leyen and Mr. Costa attended the Republic Day parade and were hosted at Rashtrapati Bhavan by President Droupadi Murmu.
Ms. von der Leyen described India’s progress as essential for global stability.
“A successful India makes the world more stable, prosperous, and secure,” she said, adding that Europe and India are working together to shape a new international order.
Mr. Costa, meanwhile, underlined the importance of maritime cooperation in the Indo-Pacific and the role of European naval forces in safeguarding freedom of navigation.
Trade Talks End Two-Decade Wait
Negotiations for the India-EU FTA were first launched in 2007 but faced repeated setbacks over sensitive issues such as agricultural market access, environmental standards, investment protection, and migration rules.
Talks were suspended between 2014 and 2022 before being revived with a more flexible and pragmatic approach. Officials said both sides agreed to set aside areas where consensus proved difficult, focusing instead on mutually beneficial sectors.
Once the agreement is formally announced, the legal text will be translated into all official EU languages and submitted to the 27 member states. It will then require ratification by the European Parliament.
Major Boost to Bilateral Trade
India and the EU currently record bilateral trade of over $136 billion annually. Officials described the agreement as one of the largest trade deals globally, noting that the EU functions as a unified customs bloc.
Unlike regional groupings such as ASEAN, the EU negotiates and implements trade agreements collectively, making the deal particularly significant for Indian exporters and investors.
The agreement is expected to improve market access in sectors such as pharmaceuticals, engineering goods, textiles, information technology, renewable energy, and digital services.
Defence and Security Cooperation to Expand
Apart from trade, India and the EU are also preparing to upgrade their strategic partnership, originally signed in 2004.
The revised framework will focus on maritime security, cyber defence, counter-terrorism, space cooperation, and joint military engagement. Officials said defence collaboration has gained momentum in recent years due to shared concerns over regional stability.
The presence of EU defence representatives at the Republic Day parade was seen as a symbolic step in strengthening security ties.
Our Thoughts
The conclusion of the India-EU Free Trade Agreement represents a turning point in India’s economic diplomacy. After years of stalled negotiations, both sides have demonstrated political will to move beyond differences and focus on long-term cooperation.
If implemented effectively, the agreement can unlock new opportunities for Indian businesses, boost exports, and strengthen India’s integration with global value chains. It also signals Europe’s intent to deepen engagement with India at a time of shifting geopolitical alliances.
The challenge ahead will lie in timely ratification and smooth implementation, ensuring that the benefits reach industries, workers, and consumers across both regions.