In a significant advancement toward forming a major global trade alliance, India and the European Union have committed to expediting the finalization of a Free Trade Agreement (FTA) by the end of this year. This ambitious pact aims to forge one of the largest trade partnerships globally, connecting nearly two billion people and encompassing approximately a quarter of the world’s economic output. The commitment was made during a trilateral meeting involving Indian Prime Minister Narendra Modi, European Council President António Costa, and European Commission President Ursula von der Leyen at the G7 Summit in Evian, France.
The leaders outlined the proposed FTA as a comprehensive agreement that will encompass goods, services, digital trade, investment, and technology cooperation. This framework is expected to enhance economic integration between India and Europe, especially as global supply chains continue to evolve. Beyond the trade agreement, both parties have expressed intentions to deepen collaboration in defense, connectivity, and strategic infrastructure projects, such as the India–Middle East–Europe Economic Corridor.
With negotiations having gained momentum earlier this year, EU leaders emphasized the rapid progress achieved so far. The focus now shifts to finalizing the legal and technical specifics necessary for the formal signing of the agreement. Prime Minister Modi underscored the importance of bolstering India-EU relations to foster stability and inclusive growth, while European leaders highlighted the strategic importance of this partnership in addressing global economic and geopolitical challenges.
During the meeting, broader cooperation on trade and investment was also reviewed, along with discussions on regional and global issues of mutual interest. Officials from both sides reported a strong momentum in their engagements, with expectations of continued high-level interactions in the lead-up to the anticipated signing of the agreement.