India and the European union Tuesday reached a landmark milestone with the conclusion of a comprehensive Free Trade Agreement (FTA) at the 16th India-EU Summit in New Delhi, accompanied by the launch of an ambitious Security and Defence Partnership.
The historic development signals a deepening of bilateral ties across economic, security, and strategic domains amid evolving global geopolitical dynamics.
Prime Minister Narendra Modi, addressing the India Energy Week virtually, announced the signing of the FTA, describing it as the “mother of all deals” that covers 25 per cent of global GDP and one-third of global trade. “This agreement has brought a lot of opportunities for 140 crore Indians and crores of Europeans,” Modi said, calling it “an excellent example of coordination between two economies of the world.” He highlighted that the pact will boost India’s manufacturing and services sectors while complementing existing trade agreements with the UK and the European Free Trade Association (EFTA).
The EU delegation, led by European Council President António Costa and European Commission President Ursula von der Leyen, who were Chief Guests at the Republic Day parade on Monday, underscored the strategic importance of this partnership.
“India is a crucial partner for the EU. Together, we share the capacity and responsibility to protect the rules-based international order.” Von der Leyen emphasised that a prosperous India contributes to global stability, security, and prosperity.
The trade deal, years in the making since negotiations began in 2007 and relaunched in 2022, involves significant concessions, including India’s willingness to slash customs duties on high-end petrol and diesel vehicles, albeit with volume caps, while protecting its nascent electric vehicle industry by excluding battery-operated vehicles for five years. Commerce Secretary Rajesh Agrawal confirmed that the final legal scrubbing is underway, with the agreement expected to take effect next year.
Beyond economics, the summit advanced plans for a Security and Defence Partnership aimed at enhancing cooperation in maritime security—especially in the Indo-Pacific region—counter-terrorism, cybersecurity, non-proliferation, space, and hybrid threat responses. Officials highlighted ongoing joint naval operations, including anti-piracy patrols in the Red Sea with the EU Naval Task Force (EUNAVFOR), and strengthened defence industrial collaboration, with Indian manufacturers partnering with European firms such as Dassault, Airbus, and Rheinmetall.
Bhaswati Mukherjee, former Indian Ambassador to the EU, noted, “The European union now regards India as a valuable ally in the new world order or disorder which has come about.” She added that Europe’s traditional reliance on soft power is giving way to renewed military focus, with India emerging as a key supplier and collaborator in defence technology.
The EU also aims to enhance intelligence sharing through a Security of Information Agreement, facilitating the exchange of classified information and laying the groundwork for India’s potential participation in EU security initiatives.
External Affairs Minister S Jaishankar expressed optimism, stating that the summit “heralds a new chapter in EU-India relations,” reflecting a comprehensive strategic agenda covering prosperity, sustainability, technology, innovation, security, and connectivity.
This summit, held against a backdrop of shifting global alliances and challenges—including Russia’s war in Ukraine, Indo-Pacific stability concerns, and Middle East tensions—cements the India-EU partnership as a pivotal axis in the emerging multipolar world order. It brings together two democratic powers committed to advancing free trade, shared security, and global stability through enhanced cooperation across diverse sectors.
