India-EU trade deal likely on Jan 27, EU leaders to attend summit in Delhi

India and the European Union could be close to sealing a long-coveted trade agreement, with top EU leaders scheduled to visit New Delhi later this month for the Republic Day celebrations and to attend the 16th India-EU Summit on January 27.  President of the European Council Antonio Luis Santos da Costa and President of the European Commission Ursula von der Leyen will be on a state visit to India from January 25 to 27 at the invitation of Prime Minister Narendra Modi, and will also officiate as Chief Guests of India's 77th Republic Day celebrations on January 26. The two leaders will also co-chair the India-EU Summit the next day.  Trade Secretary Rajesh Agrawal told news agency Reuters that New Delhi and Brussels were “very close” to finalising a trade agreement and were exploring whether it could be wrapped up before the leaders’ meeting in New Delhi.  Agrawal said that as many as 20 out of 24 chapters under the ambitious India-EU FTA have been finalised, with a few issues remaining under ongoing negotiations, according to an ANI report.

  "We have closed 20 out of 24 chapters completely, there are few issues which are still ongoing negotiations, which we are virtually engaged on a day-to-day basis, and we are trying to see if we can meet the timeline before our leaders can meet," he was quoted as saying by ANI.

 

  German Chancellor Friedrich Merz, who was recently in India, had also indicated that the India-EU trade pact could be signed by the end of January.  According to the ANI report, Agrawal said that both parties are trying to see that "we can meet that (January deadline) because that's a good occasion when our leaders are meeting, but we can only make efforts". He cautioned, however, that "coming near is not good enough".   During his visit, Merz urged the European Union and India to quickly finish the trade talks, saying this would help fix supply chains that have faced disruptions over the past year. He added that his country offers "strong support" for the trade deal. 

Why talks gained urgency

 

Negotiations on an India-EU trade agreement were relaunched in 2022 after remaining stalled for years. Talks gained momentum after US President Donald Trump raised tariffs on several trading partners, including India, while a separate India-US trade deal collapsed last year following a breakdown in communication between the two governments.

 

Both sides agreed to fast-track negotiations after von der Leyen and PM Modi met last year, with the aim of concluding a deal in 2025. Since then, Brussels has signed trade agreements with Mexico and Indonesia, while India has sealed deals with the United Kingdom, Oman and New Zealand.   India and the European Union have been strategic partners since 2004. The last India-EU Summit was held virtually in July 2020, with ties expanding significantly after the visit of the EU College of Commissioners to India in February 2025.   Trade between India and the European Union reached €120 billion ($140.21 billion) in 2024, making the EU India’s largest trading partner.  In 2024-25, India’s exports to the European Union stood at $75.85 billion, a decline of 0.09 per cent compared to the previous year. Imports from the bloc also fell by 1.3 per cent to $60.68 billion, according to data from the Ministry of Commerce and Industry.

 

During the same period, the EU remained India’s biggest export market after the United States.