India, EU to sign free trade agreement by year-end: Ursula von der Leyen
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India and the European Union (EU) will sign their long-awaited Free Trade Agreement (FTA) by the end of 2026, European Commission President Ursula von der Leyen said on Wednesday after holding talks with Prime Minister Narendra Modi on the sidelines of the G7 Summit in Evian, France.
The meeting, which was also attended by European Council President António Costa, focused on strengthening economic ties, accelerating investment cooperation, and deepening collaboration in security, defence, and connectivity initiatives.
“Since we have concluded the mother of all trade deals, we have been moving fast to deliver on our commitments. We will sign the Free Trade Agreement by the end of the year and accelerate work on an investment agreement,” von der Leyen said in a post on X.
She added that India and the EU would also step up security and defence cooperation and advance the India-Middle East-Europe Economic Corridor (IMEC), a flagship connectivity initiative aimed at enhancing trade and infrastructure links between Asia, the Middle East and Europe.
Prime Minister Modi described the discussions as productive and highlighted the growing momentum in India-EU relations. “It was wonderful meeting European Council President António Costa and European Commission President Ursula von der Leyen in Evian earlier today. At the start of this year, India was proud to host them for our Republic Day celebrations,” Modi said in a post on X.
“This has been a great time for India-EU ties as we have concluded the Free Trade Agreement. During our talks, we discussed how to further deepen economic linkages in the times to come. Our growing cooperation can play an important role in strengthening peace, stability and prosperity in today’s global environment,” he added.
India and the European Union had announced the conclusion of negotiations for the landmark trade pact during their summit in New Delhi earlier this year, paving the way for one of the world’s largest bilateral trade agreements.
Together, India and the EU represent the world’s fourth- and second-largest economies, respectively, accounting for around 25% of global GDP and nearly one-third of global trade.
The agreement is expected to significantly boost trade and investment flows by lowering tariff barriers across a wide range of goods and services. Under the proposed pact, tariffs on nearly 97% of European exports to India will either be eliminated or substantially reduced. According to the agreement, duties on 96.6% of goods exported by the EU will be removed or lowered, making many European products more competitive in the Indian market and potentially cheaper for consumers.
The FTA is also expected to create new opportunities for Indian exporters by improving market access to the European bloc, one of India's largest trading partners. The planned signing of the agreement by year-end would mark a major milestone in India-EU economic relations and reinforce strategic cooperation between the two sides at a time of increasing global trade realignments.