India-EU Summit to Finalise Mega FTA and Defence Pact

India and the European Union are set to announce the conclusion of negotiations on a long-awaited Free Trade Agreement (FTA) and roll out an expansive roadmap to deepen bilateral ties at the India–EU Summit in New Delhi on Tuesday. Prime Minister Narendra Modi will host European Commission President Ursula von der Leyen and European Council President Antonio Costa, with trade, defence, security and technology expected to dominate the high-level discussions.

The summit is expected to mark a turning point in India–EU relations, with officials indicating that finalisation of the FTA, a strategic defence partnership and a mobility framework for Indian professionals will be among the key outcomes. The talks come amid shifting global geopolitical dynamics, including uncertainty over trade and security policies, prompting both sides to seek stronger strategic alignment. Von der Leyen, who attended India’s 77th Republic Day celebrations as chief guest, described India as a stabilising force in the global order, saying, “A successful India makes the world more stable, prosperous and secure.”

Negotiations on the FTA were first launched in 2007 but stalled in 2013 due to differences over market access and regulatory standards. Talks were relaunched in June 2022, and the proposed agreement is now being described by EU leaders as “historic,” potentially creating a market of nearly two billion people and accounting for close to a quarter of global GDP. The deal is expected to significantly boost trade, investment and supply-chain integration across multiple sectors.

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Beyond trade, the summit is set to unveil a Security and Defence Partnership (SDP) aimed at enhancing interoperability, defence collaboration and industrial cooperation. The proposed framework would allow Indian companies to participate in the EU’s €150 billion SAFE (Security Action for Europe) programme, designed to strengthen defence readiness across the bloc. Negotiations are also expected to be launched for a Security of Information Agreement (SOIA), which would further facilitate joint defence manufacturing and technology sharing.

Another major outcome is likely to be a memorandum of understanding on mobility, providing a structured framework for facilitating the movement of Indian professionals to Europe. Several EU member states, including France, Germany and Italy, already have migration and mobility partnerships with India. Leaders are also expected to discuss global challenges such as the Russia–Ukraine war, climate change, critical technologies and the rules-based international order. With the EU already India’s largest trading partner in goods—bilateral trade reaching about USD 136 billion in 2024–25—the summit is widely seen as a decisive step towards elevating the partnership to a new strategic level.

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