Evian (France), June 17: India and the European Union are moving swiftly towards signing a landmark Free Trade Agreement (FTA) by the end of this year, following the formal conclusion of negotiations earlier in January, a development widely described as the “mother of all trade deals.”
The proposed pact, which covers goods, services, and digital trade, is expected to create one of the world’s largest integrated economic spaces, spanning nearly two billion people and accounting for about a quarter of global GDP. The agreement is designed to significantly expand trade, investment flows, and technology collaboration between India and the EU.
The renewed momentum was clearly visible after a high-level meeting on Wednesday between Prime Minister Narendra Modi, European Council President Antonio Costa, and European Commission President Ursula von der Leyen on the sidelines of the G7 Summit in Evian.
In coordinated posts on social media platform X, both Costa and von der Leyen underlined the progress made and reaffirmed their commitment to fast-tracking the agreement. They said the FTA would be signed by the end of the year, while also indicating accelerated work on an investment protection pact. The leaders further highlighted plans to deepen security and defence cooperation and advance connectivity initiatives such as the India–Middle East–Europe Economic Corridor (IMEC).
Prime Minister Modi also expressed optimism after the meeting, recalling India’s hosting of EU leaders during Republic Day celebrations earlier this year and describing the current phase as a strong period for India–EU relations. He noted that discussions focused on deepening economic linkages and emphasized that stronger cooperation could contribute to global peace, stability, and prosperity.
Ministry of External Affairs spokesperson Randhir Jaiswal said the leaders reviewed progress since the 16th India–EU Summit held earlier this year, welcomed the advancement in bilateral ties, and exchanged views on regional and global developments of mutual interest.
On the sidelines of the G7 Summit, PM Modi also held bilateral talks with German Chancellor Friedrich Merz, focusing on expanding cooperation in trade, investment, defence, IT, circular economy, and cultural exchanges. Both leaders also reviewed the growing momentum in the India–Germany Strategic Partnership as the two countries mark 75 years of diplomatic relations.
According to officials, early implementation of the India–EU FTA is expected to further strengthen India’s bilateral ties with key European partners, including Germany, while reinforcing broader strategic and economic engagement across the region.
