The European Union and India announced their intention to finalise a comprehensive free-trade agreement (FTA) by the end of 2025, Euractiv reported.
The announcement came after a high-level meeting in New Delhi, where European Commission President Ursula von der Leyen and Indian Prime Minister Narendra Modi expressed their commitment to overcoming longstanding trade barriers. They also pledged to promote deeper economic co-operation.
Negotiations for an EU-India FTA have been ongoing for years, with initial talks collapsing in 2013 due to disagreements over key issues such as market access, intellectual property rights, and tariffs. Discussions resumed in 2016 but faced repeated delays.
However, both sides now appear determined to reach a deal, with von der Leyen describing the potential agreement as “the largest of its kind in the world.” She acknowledged the challenges ahead but expressed confidence in the mutual benefits of a deal.
The push for an FTA came amid shifting global trade dynamics and rising geopolitical tensions. Just days before the announcement, former US President Donald Trump hinted at imposing new tariffs on EU imports, underscoring the need for the EU to diversify its trade partnerships.
For India, the agreement represents an opportunity to boost exports, attract foreign investment, and integrate more deeply into global supply chains. Modi described the goal as achieving a “mutually beneficial free-trade agreement” that would reinforce economic ties and create new opportunities for both regions.
