India and EU Set to Seal Landmark Free Trade and Defence Pacts at January Summit
Historic pact set to reshape global alliances and boost billions in trade.
India and the European Union prepare to finalize a landmark Free Trade Agreement alongside a comprehensive defence pact and a bold strategic agenda during a high-stakes summit on January 27, 2026. The gathering follows India's Republic Day parade on January 26, where European leaders will serve as chief guests, underscoring the deepening diplomatic ties amid a volatile global landscape.
Negotiations on the FTA have advanced rapidly, with 12 of 20 chapters already concluded and daily discussions underway in New Delhi and Brussels to resolve the remaining eight. Prime Minister Narendra Modi and European Commission President Ursula von der Leyen recommitted to wrapping up the deal by December during their September meeting, while EU Trade Commissioner Maroš Šefčovič plans an early December visit to India to iron out sticking points like steel tariffs, automotive regulations, and the EU's Carbon Border Adjustment Mechanism.
The defence framework pact forms a cornerstone of the new joint strategic agenda, which identifies five key areas of collaboration: security and defence, connectivity with global issues, prosperity, sustainability, and technology plus innovation. This agenda emphasizes resilient supply chains, digital advancements, green energy transitions, and trilateral partnerships such as the India-Middle East-Europe Economic Corridor, positioning India and the EU as leaders in multilateral efforts.
European Council President Antonio Costa highlighted the partnership's potential, stating that in a multipolar world India emerges as a pivotal global actor and natural strategic ally for the EU. A senior EU official added that together with France, India and the EU can drive global governance agendas, especially as the US steps back, fostering cooperation on counterterrorism, maritime security, cyber defence, and regional connectivity projects.
The agreements promise to supercharge bilateral trade, which hit $135 billion in goods for FY 2023-24, while addressing supply chain disruptions from US tariff policies and geopolitical tensions. Despite unresolved hurdles in sensitive sectors, the summit arrives just 1.5 months after India's hosting of Russian President Vladimir Putin, signaling Brussels' intent to solidify India as a reliable counterweight in an increasingly hostile international environment.
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