India and the European Union are targeting the conclusion of their long-anticipated Free Trade Agreement (FTA) by the close of 2026. This announcement came from European Commission President Ursula von der Leyen following her meeting with Indian Prime Minister Narendra Modi on the sidelines of the G7 summit.
During their discussions, which also included European Council President Antonio Costa, leaders reaffirmed their commitment to strengthening economic and strategic ties amidst a dynamic global geopolitical landscape. Beyond the trade pact, both India and the EU agreed to deepen cooperation in crucial areas such as security and defense. They also committed to accelerating plans for the India-Middle East-Europe Corridor (IMEC), a strategic connectivity initiative.
Von der Leyen confirmed the ambitious timeline via social media, stating, "Since we have concluded the mother of all trade deals, we have been moving fast to deliver on our commitments. We will sign the Free Trade Agreement by the end of the year. And accelerate work on an investment agreement." She further elaborated, "We will also step up security & defence cooperation. And join forces for better connectivity by advancing IMEC, the India-Middle East-Europe Corridor."
The two entities had initially announced the conclusion of negotiations for this significant trade deal during their summit meeting earlier in the year in New Delhi, setting the stage for the current push towards finalization.