India and the European Union are close to concluding a long-pending Free Trade Agreement (FTA), with an announcement expected at the India–EU Summit on January 27. European Commission President Ursula von der Leyen said the deal could create a market of nearly 2 billion people, accounting for about 25% of global GDP.The EU is India’s largest trading partner, with bilateral goods trade at $135 billion in FY2023–24. FTA talks began in 2007, were paused in 2013, and relaunched in June 2022.Beyond trade, the summit is expected to unveil a Security and Defence Partnership, a strategic roadmap for 2026–2030, and initiate talks on a Security of Information Agreement, potentially allowing Indian firms to access the EU’s €150 billion SAFE defence programme.The agreement comes amid global trade uncertainty and shifting supply chains, marking a significant step in deepening India–EU economic and strategic ties.
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