India and the European Union are preparing for a high-stakes diplomatic and economic moment as both sides move closer to finalising a long-pending Free Trade Agreement during the 16th India–EU Summit scheduled for January 27.
The summit will take place as the European Union’s top leadership visits New Delhi as chief guests for India’s 77th Republic Day celebrations, underlining the growing strategic importance of the partnership.
Alongside the summit, an India–EU Business Forum is also expected to be held, highlighting the strong economic focus of the visit and the push to deepen commercial and investment ties.
At the centre of the discussions is the India–EU Free Trade Agreement, formally known as the Broad-based Trade and Investment Agreement. Negotiations were first launched in 2007, stalled for several years, and were relaunched in 2022 amid major shifts in the global economic and geopolitical landscape.
Talks gained renewed momentum in 2025 and have since been fast-tracked, with officials indicating that the agreement is nearing completion.
Government officials have indicated a strong political intent on both sides to conclude the negotiations ahead of the leaders’ meeting, raising expectations that an announcement could be made during the summit.
Sensitive agricultural issues, which have historically posed challenges, are reported to have been kept outside the scope of the agreement, easing political concerns in both India and several EU member states.
If signed, the FTA would represent one of India’s most significant trade agreements and a major breakthrough for the European Union in Asia. The deal is expected to boost two-way trade, deepen investment flows, and strengthen supply chains.
Key sectors likely to benefit include manufacturing, technology, clean energy, pharmaceuticals, and services. However, some complex issues remain, including market access in specific industrial sectors and concerns related to carbon-related trade measures.
India and the EU have been strategic partners since 2004, with relations expanding significantly in recent years. Cooperation has deepened across areas such as technology, sustainability, security, and global connectivity.
The presence of the EU’s top leadership at the Republic Day celebrations is being seen as a strong political signal of commitment to the partnership.
If the Free Trade Agreement is announced on January 27, it would mark the culmination of nearly two decades of negotiations and open a new chapter in India–EU relations.
