EU Council clears final step for India-EU free trade deal to be signed by year-end

The Council of the European Union has formally approved a new strategic agenda for relations with India, paving the way for a comprehensive free trade agreement (FTA) expected to be concluded by the end of 2025, according to a statement on the Council’s website. The Council said the proposed pact seeks to create a balanced, ambitious, and mutually beneficial framework that boosts economic cooperation and promotes sustainable growth. The move signals renewed momentum in the India-EU relationship, which has gained pace in recent years as both sides seek closer economic and strategic alignment.

The Council emphasised that the free trade agreement must deliver enhanced market access, removal of trade barriers, and provisions on sustainable development. Both the European Commission and the Indian government have been working towards closing negotiations by the end of this year. The statement highlighted that India and the EU share a joint responsibility to safeguard multilateralism and a rules-based international order anchored in the UN Charter. It reaffirmed their commitment to the World Trade Organization (WTO) and to strengthening the multilateral trading system amid growing global economic uncertainty.

Add Zee Business as a Preferred Source

Broader cooperation under the new India-EU agenda

The Council endorsed the Joint Communication on a “New Strategic India-EU Agenda”, prepared by the European Commission and the High Representative, outlining key areas for deeper collaboration. These include prosperity and sustainability, innovation and technology, connectivity, security and defence, and engagement on global issues. It invited the High Representative and the Commission to take forward implementation of this agenda, acknowledging the strong impetus in relations between the two partners. The Council also underscored the importance of democratic values, international law, and human rights – including the rights of women and children – as core elements of the India-EU relationship.

In light of an increasingly complex geopolitical landscape, the Council welcomed closer India-EU coordination on defence and security matters. It took note of plans to establish a Security and Defence Partnership that could support defence industrial cooperation where appropriate, founded on mutual trust and respect. The EU said such cooperation could enhance strategic resilience and contribute to a more stable Indo-Pacific region, where both partners share an interest in maintaining open and secure sea lanes and upholding international law.

The Council reaffirmed that it would continue to engage with India on major global challenges, including Russia’s war in Ukraine. It stressed that dialogue and cooperation remain essential to addressing global instability, climate change, and disruptions in supply chains.