New Delhi: India is moving closer to finalising a landmark defence and trade partnership with the European Union, as a high-level EU delegation held discussions with Defence Minister Rajnath Singh in New Delhi Tuesday.
The meeting held at Singh’s office takes place amid broader negotiations to deepen strategic, economic, and security ties between India and the EU.
The talks coincide with the four-day visit of European Commission President Ursula von der Leyen, who arrived in India January 24.
She is scheduled to hold talks with Prime Minister Narendra Modi at the 16th India–EU Summit later Tuesday, alongside visiting European Council President Antonio Costa.
The summit is expected to mark a major milestone in bilateral relations, with officials set to announce the conclusion of negotiations on the long-awaited India–EU Free Trade Agreement (FTA), described by officials as the “mother of all trade deals”.
Commerce Secretary Rajesh Agrawal confirmed Monday that India and the EU have successfully concluded negotiations on the FTA and that a formal announcement would be made at the summit. He described the agreement as balanced and forward-looking, stating that it would significantly boost trade and investment flows while strengthening economic integration between the two parties.
Bilateral goods trade between India and the EU is estimated at $136 billion in 2024–25, making the EU India’s largest trading partner.
The bloc accounts for nearly 17 per cent of India’s total exports, while exports to India represent about 9 per cent of the EU’s overseas shipments.
While the negotiations have been finalised, the agreement will take effect sometime next year.
According to Agrawal, the text of the pact will undergo legal scrubbing over the next five to six months, followed by formal signing, ratification by the European Parliament, and approval by the Indian Cabinet.
Officials said the summit will also focus on expanding cooperation across key areas such as defence and security, clean energy transition, digital technologies, and people-to-people ties. The defence discussions underway with Rajnath Singh are seen as part of this broader effort to strengthen the India–EU strategic partnership.
The India-EU FTA is being seen as a major step in expanding India’s global trade footprint. The agreement could help soften the impact of high US tariffs by opening up wider opportunities in the European market, especially for Indian exports such as textiles and jewellery.
One of the most significant outcomes of the pact is the opening up of India’s automobile sector to European car manufacturers. Import duties on European vehicles are expected to be sharply reduced from the current 110 per cent to around 40 per cent — making cars from companies like Volkswagen, Mercedes-Benz and BMW more affordable in the Indian market.
