New Delhi, Jan 27 (PTI): India and the European Union have concluded what European Commission President Ursula von der Leyen described as the “mother of all” trade deals, marking a historic breakthrough in bilateral ties as Prime Minister Narendra Modi and top EU leaders held summit talks on Tuesday to strengthen cooperation amid global geopolitical and trade disruptions.
Prime Minister Modi hosted von der Leyen and European Council President Antonio Costa for the summit, during which the two sides agreed to conclude negotiations on the long-pending India-EU Free Trade Agreement (FTA).
“Europe and India are making history today. We have concluded the mother of all deals. We have created a free trade zone of two billion people, with both sides set to benefit,” von der Leyen said. “This is only the beginning. We will grow our strategic relationship to be even stronger.”
Von der Leyen and Costa were the chief guests at India’s 77th Republic Day celebrations at Kartavya Path on Monday and paid tribute to Mahatma Gandhi at Rajghat ahead of the summit.
The conclusion of the FTA negotiations is expected to significantly expand India-EU engagement by opening new opportunities across multiple sectors. While a formal document announcing the end of negotiations will be inked, the agreement is likely to take at least six months to be officially signed, as it will require detailed legal scrutiny by both sides.
India and the EU first launched FTA negotiations in 2007, but talks were suspended in 2013 due to differences in ambition. The negotiations were revived in June 2022. The EU is currently India’s largest trading partner in goods. In 2024-25, bilateral goods trade stood at around USD 136 billion, with Indian exports valued at about USD 76 billion and imports at USD 60 billion.
Beyond trade, the summit focused on defence and security cooperation, climate change, critical technologies and strengthening the rules-based global order. Alongside the FTA, the two sides are set to unveil a defence framework pact and a broader strategic agenda.
India and the EU have been strategic partners since 2004. Officials said the proposed Security and Defence Partnership will deepen cooperation, enhance interoperability and open avenues for Indian firms to participate in the EU’s SAFE (Security Action for Europe) programme — a Euro 150 billion financial instrument aimed at boosting defence readiness among member states.
The two sides are also set to launch negotiations on a Security of Information Agreement, which is expected to enhance industrial defence cooperation. An agreement facilitating the mobility of Indian workers to Europe will also be inked, providing a framework for mobility initiatives by EU member states. France, Germany and Italy already have migration and mobility partnerships with India.
Several other agreements covering wider areas of cooperation are also expected, with leaders likely to deliberate on pressing global challenges, including the Russia-Ukraine war, officials said.
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