India and the European Union on Tuesday marked a major milestone in their bilateral relations with the conclusion of the largest Free Trade Agreement (FTA) in India’s history, alongside the launch of a comprehensive Security and Defence Partnership, signalling a decisive deepening of strategic, economic, and people-centric cooperation.
Prime Minister Narendra Modi, addressing a joint press statement with European Council President António Costa and European Commission President Ursula von der Leyen, described the moment as the beginning of a “new era” in India-EU relations. The announcement followed the 16th India-EU Summit, held after EU leaders participated as Chief Guests in India’s Republic Day celebrations – an unprecedented first.
Highlighting the rapid progress in India–EU ties over recent years, the Prime Minister noted that bilateral trade has reached 180 billion euros, while over eight lakh Indians currently reside in EU countries, contributing actively to European economies. He underlined that shared democratic values, economic complementarity, and strong people-to-people connections form the backbone of the partnership.
Calling the newly concluded FTA a “blueprint for shared prosperity,” the Prime Minister said the agreement would significantly enhance market access for Indian farmers, small industries, manufacturers, and service providers across the 27 EU member states. The agreement is expected to boost investments, strengthen global supply chains, encourage innovation partnerships, and create new opportunities in manufacturing and services.
In addition to trade, India and the EU agreed on a new mobility framework aimed at expanding opportunities for Indian students, professionals, and workers in Europe. Cooperation in science and technology—already a long-standing pillar of the relationship—will also be further strengthened.
Security and defence cooperation emerged as another key outcome of the Summit. The newly formalised India–EU Security and Defence Partnership will deepen collaboration in counter-terrorism, maritime security, cyber security, and defence industrial cooperation, including co-development and co-production. Both sides reaffirmed their commitment to a rules-based international order, with enhanced cooperation in the Indo-Pacific region.
Building on these outcomes, India and the EU also launched an ambitious and holistic strategic agenda for the next five years, aimed at advancing shared prosperity, accelerating innovation, reinforcing security cooperation, and deepening people-to-people ties amid a complex global environment.
Describing the partnership as a “partnership for the global good,” PM Modi said India and the EU would expand trilateral projects from the Indo-Pacific to the Caribbean, focusing on sustainable agriculture, clean energy, and women’s empowerment. The leaders also agreed to work together to establish the India-Middle East-Europe Economic Corridor (IMEC) as a key pillar of global trade and sustainable development.
The leaders exchanged views on major global and regional developments, including Ukraine, West Asia, and the Indo-Pacific, reiterating their shared commitment to multilateralism and international norms. Both sides agreed that reform of global institutions is essential to effectively address contemporary global challenges.
Concluding his remarks, the Prime Minister described the Summit as a historic turning point, stating that moments such as these redefine the direction of international partnerships. He thanked Presidents Costa and von der Leyen for their visit and reaffirmed India’s commitment to a strong, future-oriented partnership with the European Union.
