When will India and EU seal the free trade deal? Ursula von der Leyen gives key update | World

India and the European Union (EU) have set their sights on finalising and signing the long-awaited Free Trade Agreement (FTA) by the end of this year, marking a significant step forward in their economic partnership. The announcement was made by European Commission President Ursula von der Leyen following high-level discussions with Prime Minister Narendra Modi on the sidelines of the G7 Summit in Canada. The meeting was also attended by European Council President Antonio Costa, emphasising the importance both sides attach to strengthening strategic ties across trade, investment, connectivity and security. 

Following the talks, Von der Leyen shared an optimistic update on the progress of negotiations, indicating that both sides are moving quickly to fulfil commitments made during earlier discussions. “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 on social media.

Focus on security, defence and connectivity

Beyond trade, India and the European Union also agreed to deepen cooperation in security and defence sectors amid evolving geopolitical challenges. “We will also step up security & defence cooperation. And join forces for better connectivity by advancing IMEC, the India–Middle East–Europe Corridor,” she added.

The India-Middle East-Europe Economic Corridor (IMEC) is seen as a transformative connectivity initiative that aims to improve trade links, logistics networks and economic integration between Asia, the Middle East and Europe.

Momentum builds after New Delhi summit

The latest development follows sustained engagement between India and the European Union over the past year. At their summit in New Delhi earlier this year, both sides announced the successful conclusion of negotiations for the ambitious trade pact, paving the way for the final signing process. The agreement is expected to significantly expand market access, reduce trade barriers and create fresh opportunities for businesses on both sides.

Slovakia backs swift implementation of India-EU deal

Support for the trade agreement is also growing across Europe. During Prime Minister Narendra Modi’s recent visit to Slovakia, Slovak Prime Minister Robert Fico strongly endorsed the India-EU FTA and described it as one of the most ambitious trade agreements negotiated in recent years.

Speaking during joint statements and the exchange of Memorandums of Understanding in Bratislava, Fico expressed confidence that the agreement would unlock substantial economic benefits for European economies, including Slovakia’s export-driven industries. He also assured India’s leadership of Slovakia’s full support for the agreement’s early implementation.

India’s expanding global trade footprint

The India-EU agreement forms part of New Delhi’s broader strategy to strengthen economic engagement with major global partners. During the 2025-26 fiscal year, India accelerated its trade diplomacy by finalising several major trade and economic partnership agreements with key economies, including the United Kingdom, Oman and New Zealand.

According to the Ministry of Commerce and Industry, these agreements are aimed at boosting exports, attracting investments, reducing tariff barriers and improving access for Indian goods and services in international markets.

Among the key milestones was the signing of the India-UK Free Trade Agreement, officially known as the Comprehensive Economic and Trade Agreement (CETA), on July 24, 2025. This was followed by the conclusion of the India-Oman Comprehensive Economic Partnership Agreement on December 18, 2025.

Why the India-EU FTA matters

The European Union is one of India’s largest trading partners and a major source of foreign investment. Experts believe the proposed FTA could significantly increase bilateral trade, strengthen supply chains and create new opportunities in sectors such as manufacturing, technology, pharmaceuticals, clean energy, automobiles and services.

For Indian exporters, improved access to European markets could boost competitiveness, while European businesses are expected to benefit from greater access to one of the world’s fastest-growing major economies. The agreement is also expected to reinforce India’s position as a key player in global trade and economic cooperation.

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