In an effort to strengthen their relationship amid concerns with the US, the European Union and India are about to announce a historic trade agreement following nearly 20 years of intermittent negotiations. The deal has been finalized, according to Rajesh Agarwal, India’s Commerce Secretary. The statement is anticipated in Delhi, where European Council President António Luís Santos da Costa and European Commission President Ursula von der Leyen are present. In response to economic and geopolitical pressure from the US, both the EU and India are looking to deepen their strategic and commercial connections with the rest of the globe.
India and the European Union are moving closer to a trade agreement amid rising global protectionism and ongoing tariff tensions with the US under President Donald Trump. EU leaders said the deal would send a strong political message in favour of trade over tariffs and reflect a shared commitment to shaping a new global order. European Commission President Ursula von der Leyen and European Council President António Costa, who attended India’s Republic Day celebrations as chief guests, are meeting Prime Minister Narendra Modi at a bilateral summit where the deal is expected to be announced. Formal signing is likely later this year, pending approval by EU institutions. The agreement aims to boost Indian exports to Europe and facilitate greater European investment and market access in India.
Prime Minister Narendra Modi described the India–EU trade agreement as a landmark partnership between two major economies, together accounting for 25% of global GDP and one-third of world trade. The EU is India’s largest goods trading partner, with bilateral trade reaching $136 billion in 2024–25. Negotiations, which began in 2007, stalled in 2013 due to differences over market access, regulatory issues, automobiles, agriculture and carbon-related tariffs, before resuming in 2022. After intensive talks to resolve pending issues ahead of the EU leaders’ visit, the deal—hailed by leaders as the “mother of all trade deals”—comes amid growing pressure on both sides to diversify export markets. India has recently concluded multiple trade agreements, including with the UK, Oman, New Zealand and the European Free Trade Association.