India–EU Seal Momentum on Mega Trade Deal

FTA push at 16th summit signals deep strategic and economic alignment

January 27, 2026: India and the European Union have given fresh momentum to their long-pending Free Trade Agreement at the 16th India–EU Summit, marking a major reset in bilateral ties. In a diplomatic first, European Council President António Costa and European Commission President Ursula von der Leyen attended India’s Republic Day as chief guests, underlining the growing strategic convergence. The summit expanded cooperation across trade, technology, security, climate action and education, positioning the partnership as one of India’s most comprehensive global economic engagements.

Leaders described the proposed FTA as a game changer expected to boost bilateral trade, strengthen supply chains and attract private investment across key sectors. Prime Minister Narendra Modi, along with the EU leaders, reaffirmed shared values of democracy, human rights and a rules-based international order, while committing to closer collaboration on sustainable development and biodiversity. Security cooperation also featured prominently, with agreements to deepen ties in cyber security, counter-terrorism, maritime safety and space security, alongside enhanced work on emerging technologies such as AI, quantum computing and 6G.

Going beyond trade, the partnership now spans education, mobility, clean energy and geopolitics. New initiatives were announced on skills development, academic exchanges and green energy, including the EU–India Green Hydrogen Task Force and a Wind Business Summit. The two sides also backed reforms of global institutions and pledged cooperation in the Indo-Pacific. With India set to host the AI Impact Summit in February and Prime Minister Modi invited to Brussels for the next India–EU Summit, the agreement is being seen as a strategic blueprint for economic resilience and global leadership.