New Delhi [India], January 27 (ANI): India and the European Union on Tuesday elevated their strategic partnership to an unprecedented level by signing 13 major agreements and arrangements spanning trade, security, defence, mobility, clean energy, science, technology, finance and disaster management during the 16th India-EU Summit in New Delhi.
The summit was co-chaired by Prime Minister Narendra Modi, European Council President Antonio Costa, and European Commission President Ursula von der Leyen, marking a defining moment in India–EU relations rooted in shared democratic values, economic complementarity and a rules-based international order.
At the core of the outcomes was the signing of the ‘Towards 2030: A Joint India–European Union Comprehensive Strategic Agenda’, an overarching framework that will guide cooperation across political, economic, security and global governance domains for the remainder of the decade.
Historic India–EU Free Trade Agreement concluded
The summit marked the successful conclusion of negotiations on the India–EU Free Trade Agreement (FTA), described by Indian and European leaders as the largest and most consequential trade deal in India’s history.
Prime Minister Modi hailed the FTA as “not just a trade agreement, but a blueprint for shared prosperity,” noting that bilateral trade already stands at approximately EUR 180–190 billion and has expanded rapidly over the past decade.
According to the Ministry of Commerce and Industry, the FTA establishes a future-ready trade framework that strengthens market access, investment flows, innovation and sustainability. It places special emphasis on engineering, manufacturing and MSMEs, supporting India’s ambition of achieving USD 300 billion in engineering exports by integrating Indian firms into European supply chains.
The agreement delivers robust intellectual property and patent protections, while granting special recognition to India’s Traditional Knowledge Digital Library (TKDL) to safeguard indigenous knowledge systems. It also provides Most-Favoured Nation assurances, ensuring Indian exporters receive the most competitive trade terms.
Green transition, MSMEs and CBAM cooperation
Sustainability forms a central pillar of the FTA. The pact supports the rise of Green MSMEs by lowering compliance costs and enabling access to decarbonisation technologies. India secured forward-looking flexibilities to protect small businesses amid global climate-linked trade measures.
Cooperation on Carbon Border Adjustment Mechanism (CBAM) readiness was enhanced, with technical and financial pathways to ensure Indian carbon credits and verification systems are globally recognised, easing the transition for exporters.
The FTA also deepens collaboration in AI, clean technologies, semiconductors and R&D, alongside ambitious commitments in services covering IT-ITeS, professional services, education, finance and tourism.
First-of-its-kind India–EU Security and Defence Partnership
In a major strategic breakthrough, the two sides formalised the India–EU Security and Defence Partnership (SDP) — the first comprehensive defence and security framework between India and the EU.
The partnership will deepen cooperation in maritime security, defence industry and technology, cyber and hybrid threats, space, and counter-terrorism. Negotiations were also launched for an India–EU Security of Information Agreement, enabling the exchange of classified information and strengthening defence collaboration. With this, India becomes the third Asian country, after Japan and South Korea, to have such an arrangement with the EU.
Mobility, finance and disaster management cooperation
Mobility cooperation was strengthened through a Comprehensive Framework of Cooperation on Mobility and the announcement of a pilot EU Legal Gateway Office in India, aimed at enhancing legal clarity and facilitating skilled workforce movement.
In the financial domain, an MoU between the Reserve Bank of India and the European Securities and Markets Authority (ESMA) was signed, alongside an administrative arrangement on advanced electronic signatures and seals, supporting deeper financial market integration.
Disaster management cooperation was reinforced through an arrangement between India’s National Disaster Management Authority (NDMA) and the EU Directorate-General for European Civil Protection and Humanitarian Aid Operations.
Science, technology, clean energy and global partnerships
The two sides renewed the India–EU Agreement on Scientific and Technological Cooperation for 2025–2030, constituted a Green Hydrogen Task Force, and launched exploratory talks for India’s association with Horizon Europe, the world’s largest public research programme with funding of EUR 100 billion.
European Commission President von der Leyen announced funding support for cooperation in human-centric, trustworthy AI, and the launch of EU–India Innovation Hubs and an EU–India Startup Partnership to drive co-creation in frontier technologies.
Both sides also agreed to jointly implement four trilateral projects focusing on digital innovation for women and youth, solar solutions for farmers, early warning systems and sustainable energy transitions across Africa, the Indo-Pacific, the Caribbean and Small Island Developing States.
Industry and strategic reactions
Welcoming the FTA, the Federation of European Business in India (FEBI) termed it a landmark step in strengthening one of the world’s most consequential economic partnerships. Citing its Business Sentiment Survey 2026, FEBI said 75 per cent of EU firms expect higher investments and 78 per cent anticipate increased employment, with strong expansion plans in manufacturing and Global Capability Centres.
Union Commerce and Industry Minister Piyush Goyal described the summit as “game-changing and transformational,” stating that the outcomes go far beyond trade to unlock defence cooperation, innovation, financial integration and investment for one-third of humanity.
External Affairs Minister S Jaishankar said the summit would “strengthen multipolarity and help derisk the global order,” noting that the FTA, Security and Defence Partnership and mobility framework together form the foundation of a broader and deeper partnership.
A partnership for the decade ahead
The 13 agreements underscore the expanding breadth and depth of India–EU cooperation, reflecting shared priorities in strategic stability, economic growth, climate action, technological leadership and global governance — reinforcing the partnership between two of the world’s largest democracies at a time of global uncertainty. (ANI)
913 words, 5 minutes read time.
About The Author
