After a gap of nearly five years, India and the European Union are set to hold a summit next week, with officials on both sides signalling that the meeting could mark a turning point in bilateral relations. The India-EU summit, scheduled on January 27, is expected to deliver two long-anticipated outcomes: the conclusion of negotiations on an India-EU Free Trade Agreement (FTA) and the launch of a Security and Defence Partnership.
A joint statement is expected at the end of the summit, alongside a broader India-EU Comprehensive Strategic Agenda that will guide cooperation over the next five years.
“This is a very timely summit,” an EU official said. “In a multipolar world, multilateral solutions are needed, and India is a key partner in expanding and deepening the EU’s global network.”
Together, India and the EU account for nearly a quarter of global GDP, a fact repeatedly highlighted by European officials as they make the case for closer economic and strategic alignment.
FTA Talks Near Finish Line
At the centre of the summit is the proposed India-EU Free Trade Agreement, negotiations for which began almost 20 years ago. EU officials say talks are now “closing in on a deal,” raising expectations that the long-stalled negotiations could finally be concluded.
“Our objective is to conclude the negotiations,” the EU official said, stressing that while a formal signing may come later, reaching political closure would itself be a breakthrough.
Once concluded, the agreement would create one of the world’s largest trading areas, covering a combined market of around two billion people. Trade between India and the EU has grown by nearly 90 per cent over the past decade. And European officials argue that an FTA would further accelerate growth while helping both sides diversify supply chains and reduce strategic dependencies.
The agreement would involve substantial tariff reductions on both sides, according to the EU, with any future tariff changes expected to move downward rather than up.
Security And Defence Partnership
The second major deliverable of the summit will be the signing of an India–EU Security and Defence Partnership, reflecting the rapid expansion of strategic dialogue between the two sides over the past year.
EU High Representative and Vice-President Kaja Kallas is expected to sign the agreement with Indian Defence Minister Rajnath Singh. This would make India only the third Asian partner, after Japan and South Korea, to enter into such a security arrangement with the EU.
“The partnership reflects a shared understanding that our security and prosperity are fundamentally linked,” the EU official said.
The agreement will deepen cooperation across a wide range of security challenges, including maritime security, protection of critical infrastructure and emerging threats. It will also open the door to negotiations on a Security and Intelligence Sharing Agreement, further institutionalising defence cooperation.
European officials said enhanced defence ties also have an economic dimension, noting that closer cooperation would make joint production and industrial collaboration easier. “On certain defence-related orders in Europe, cooperation with India will be easier than it used to be,” the official said.
Broader Geopolitical Context
Russia’s war in Ukraine expected to feature prominently in discussions. European Council President António Costa is likely to underline that the conflict poses an existential threat to Europe, with wider implications for the Indo-Pacific.
The EU continues to urge Russia to accept an unconditional ceasefire and engage in negotiations, and officials said they would encourage India to use its diplomatic leverage in support of peace efforts.
At the same time, both sides acknowledge that differences remain. “We don’t see eye to eye on everything,” the EU official said, pointing to Ukraine. “But we share a core set of interests, and our strengths are complementary.”
Beyond trade and defence, the summit is expected to endorse cooperation on mobility, technology, green energy and connectivity, including renewed momentum for the India-Middle East-Europe Economic Corridor (IMEC), although officials cautioned that progress on the corridor has been affected by developments in the Middle East.
For Brussels, however, the message is clear: the summit is meant to signal political will on both sides to move the relationship onto a more strategic footing.
“This is about two major democracies stepping up cooperation, more trade, more security collaboration and a shared commitment to international law,” the EU official said.
