India and the European Union are nearing the conclusion of a long-pending free trade agreement, with negotiations expected to be wrapped up in the coming days, according to Spanish Foreign Minister José Manuel Albares, who was in New Delhi on Wednesday ahead of next week’s EU–India summit and an Artificial Intelligence summit scheduled for next month.
After separate meetings with External Affairs Minister S. Jaishankar and President Droupadi Murmu, Albares said the negotiations were progressing smoothly. “Everything is going forward perfectly. We do not expect any obstacle,” he said.
If concluded, the agreement would create one of the world’s largest free trade areas, covering a market of nearly two billion people. Albares framed the deal as both an economic and strategic priority. “We need to make clear to the whole world that we believe in free trade and have the instruments of dissuasion to protect ourselves from any economic coercion,” he said.
European Commission President Ursula von der Leyen is scheduled to arrive in India on Sunday evening to help resolve outstanding issues, including carbon border measures and import duties in sectors such as automobiles and steel, ahead of the EU–India summit on January 27.
Speaking earlier at the World Economic Forum in Davos, von der Leyen said the European Union was close to finalising a free trade agreement with India, calling it “the mother of all deals” and underlining the bloc’s intent to deepen trade ties and international cooperation. She has previously said the agreement would create a market of two billion people, accounting for nearly a quarter of global GDP.
Trade in goods between India and the EU has increased by almost 90% over the past decade, reaching about €120 billion in 2024, according to EU data.
Beyond trade, Albares’ visit highlighted expanding defence and industrial cooperation.
Addressing the Spanish delegation, Jaishankar said he saw “considerable potential” for strengthening economic and industrial partnerships, particularly in building resilient defence manufacturing capabilities. Albares pointed to the Airbus–Tata joint venture to manufacture C-295 transport aircraft in India as a template for future cooperation, noting that the first India-made Airbus aircraft from the Gujarat facility is expected to roll out before September 2026, slightly ahead of schedule.
On bilateral ties, Albares said Spanish Prime Minister Pedro Sánchez was expected to visit India soon and expressed hope that Prime Minister Narendra Modi would also travel to Spain. “President Sanchez will be very soon here in India for an official visit, and I hope that Prime Minister Modi will be able to visit Spain as well,” he said.
During his talks with Jaishankar, Albares formally conveyed Spain’s intention to join the Indo-Pacific Oceans Initiative and reiterated Madrid’s desire to upgrade relations with India to a strategic partnership. “And we will also express our wish of upgrading our relationship to a strategic association that is the highest level of relationship that we have with friends, like is the case in India,” he said.
The two ministers also jointly unveiled the logo for the India–Spain Dual Year of Culture, Tourism and Artificial Intelligence in 2026, marking 70 years of diplomatic relations. Albares described India as a reliable partner amid global uncertainty. “In these very complicated times in the world, it’s very important for Spain to foster our relationship with such a reliable country like India, a country that believes in international law, that upholds the principles of the United Nations Charter, and that believes in multilateralism,” he said.
Both sides exchanged views on developments in Europe and the Indo-Pacific, condemned terrorism in all its forms, and emphasised the need to strengthen international cooperation to address shared security challenges.
