India and the European Union are gearing up to finalize a long-awaited Free Trade Agreement (FTA) by the year’s end, aiming to establish one of the largest trade partnerships globally. This commitment was announced following a trilateral meeting on the sidelines of the G7 Summit in Evian, France, involving Indian Prime Minister Narendra Modi, European Council President António Costa, and European Commission President Ursula von der Leyen. The leaders emphasized that the FTA would encompass a comprehensive array of sectors, including goods, services, digital trade, investment, and technology cooperation.
The proposed agreement is set to create an expansive free trade zone, linking nearly two billion people and representing about a quarter of the global economic output. Both India and the EU have also expressed intentions to broaden collaboration in defense, connectivity, and strategic infrastructure projects, notably the India–Middle East–Europe Economic Corridor. EU leaders have reported swift progress in negotiations, which concluded earlier this year, with current efforts concentrated on finalizing the legal and technical specifics ahead of the formal signing.
Positioned as a landmark framework, the deal seeks to enhance economic integration between India and Europe, reflecting the ongoing shifts in global supply chains. Prime Minister Modi underscored the significance of fortified India-EU relations for fostering stability and inclusive growth. Meanwhile, European leaders highlighted the strategic importance of this partnership in tackling global economic and geopolitical challenges.
The trilateral meeting also served as a platform to review broader aspects of trade and investment cooperation, alongside dialogues on regional and global issues of mutual concern. Officials from both sides expressed optimism about the momentum of the negotiations, anticipating continued high-level engagements in the upcoming months to ensure the planned signing proceeds smoothly.