India and the European Union have announced plans to expedite their efforts towards finalizing a long-awaited Free Trade Agreement (FTA) by the end of the year. This development represents a significant advancement in establishing one of the globe’s largest prospective trade partnerships. This commitment was declared following a trilateral discussion involving Indian Prime Minister Narendra Modi, European Council President António Costa, and European Commission President Ursula von der Leyen during the G7 Summit in Evian, France.
The leaders outlined the agreement as an extensive pact that will encompass goods, services, digital trade, investment, and technology cooperation. The FTA aims to forge a substantial free trade area that would connect almost two billion people and represent approximately a quarter of the world’s economic output. Furthermore, both parties have expressed intentions to broaden cooperation in sectors such as defense, connectivity, and strategic infrastructure projects, including the India–Middle East–Europe Economic Corridor.
EU officials noted that negotiations have advanced swiftly since their earlier conclusion this year, with both India and the EU now concentrating on finalizing legal and technical aspects before the formal signing. The deal is envisioned as a pivotal framework to enhance economic integration between India and Europe, particularly in light of evolving global supply chains. Prime Minister Modi underscored the critical role of strengthened India–EU relations in fostering stability and inclusive growth. Meanwhile, European leaders highlighted the strategic importance of the partnership in tackling global economic and geopolitical challenges.
The trilateral meeting also served as a platform to assess broader trade and investment cooperation while facilitating discussions on regional and global issues of mutual interest. Officials from both sides expressed optimism, noting a strong momentum and anticipating continued high-level engagements in the upcoming months leading to the planned signing.