India, EU move to seal trade pact, deepen security and defence ties

India and the EU move to conclude a much-awaited trade pact while elevating security, defence and mobility ties, signalling a broader strategic alignment amid global uncertainty

As the European Union (EU) leadership — European Council President Antonio Costa and European Commission President Ursula von der Leyen —arrived in New Delhi over the weekend, both sides expressed optimism about sealing what has been billed as the “mother of all trade deals”: The India-EU free-trade agreement (FTA). 

However, those familiar with the discussions said that alongside the trade deal, the 16th India-EU Summit on Tuesday is also expected to deliver an equally ambitious agreement to upgrade the India-EU security and defence partnership. 

The proposed pact would place India’s security ties with the 27-member bloc on a par with those the EU has with Japan and South Korea. Senior diplomats involved in strengthening India-EU relations over the past year said the partnership, and the FTA, should be assessed on their own merits, rather than through comparisons with other trade agreements India has signed or is negotiating. 

The security and defence agreement, the sources said, would lend additional political weight to the relationship. 

The Union Cabinet, chaired by Prime Minister Narendra Modi, approved the proposed agreements at its meeting on Saturday, it is learnt. Alongside an announcement on the conclusion of FTA negotiations, India and the EU are expected to sign the new security and defence partnership, covering maritime security, cybersecurity and counterterrorism. 

The two sides are also set to formalise a comprehensive mobility framework to facilitate the movement of students, seasonal workers, researchers and highly skilled professionals, promote research and innovation, and conclude a ‘Security of Information Agreement’. 

Beyond expanding defence collaboration, including joint development and manufacturing of defence equipment, the security and defence pact will emphasise Indo-Pacific security. The EU signed comparable agreements with Japan and South Korea in November 2024. The Japan-EU Summit held in Brussels in July 2023 recognised that European and Indo-Pacific security are closely interlinked. 

Costa and von der Leyen will be chief guests at the 77th Republic Day parade on Monday, which will feature an EU military contingent. The contingent will include four flag bearers on three vehicles, carrying the flags of the EU, the EU Military Staff, EU Naval Force Atalanta — which leads the bloc’s naval diplomacy in the Indo-Pacific and undertakes maritime security operations — and EU Naval Force Aspides, the EU mission protecting international shipping in the Red Sea from Houthi attacks. 

India and the EU have conducted joint naval exercises in the Indian Ocean in June 2025, the Gulf of Guinea in October 2023, and the Gulf of Aden in June 2021. In December 2025, a delegation from the Society of Indian Defence Manufacturers visited Brussels and met the EU Commissioner for Defence and Space, while in September 2025 a delegation of the EU Political and Security Committee travelled to India. 

‘EU-India together’ 

The EU leadership is attending the summit under the theme “EU-India ek saath (EU-India together)”. India and the EU have been strategic partners since 2004. Officials said the presence of the EU leadership at both the summit and the Republic Day parade reflects “the trust and confidence” both sides place in each other as they seek to shape a multipolar world. 

Negotiations on the India-EU FTA began in 2007, with renewed momentum from February 2025 during the visit of the EU College of Commissioners, led by von der Leyen. 

Officials said the agreement would significantly boost economic ties amid global economic turbulence, create growth opportunities in both economies and offer tangible benefits for young people. 

On Friday, External Affairs Minister S Jaishankar met ambassadors from EU member states, where he spoke about global volatility and instability becoming the new normal. He said stronger India-EU relations could help derisk the global economy through cooperation on resilient supply chains, and stabilise the international order through deeper trade, mobility and security partnerships. Von der Leyen arrived in New Delhi on Saturday and was received by Union Minister Jitin Prasada, while Costa arrived on Sunday. European Commission Vice-President Kaja Kallas and EU Trade Commissioner Maroš Šefčovič are also in New Delhi. The FTA will be signed after legal vetting of the text on a mutually agreed date. 

Sensitive agricultural issues have been excluded from the agreement. The EU has sought to protect its beef, sugar and rice markets, while India has shielded its farm and dairy sectors. On Saturday, Prime Minister Modi said trade and mobility agreements with multiple countries would open “new opportunities” for India’s youth. New Delhi expects labour-intensive sectors such as apparel and textiles to gain from the India-EU deal. 

Modi and von der Leyen announced the establishment of the India-EU Trade and Technology Council (TTC) in April 2022 as a coordination mechanism at the intersection of trade, trusted technology and security. The second TTC ministerial meeting was held in New Delhi in February 2025, following the inaugural meeting in Brussels in May 2023 and a virtual stocktaking call in November 2023. Agreements on semiconductors, and between the Bharat 6G Alliance and the EU’s 6G Smart Networks and Services Industry Association, were signed in November 2023 and March 2024 respectively. Cooperation also includes discussions on artificial intelligence, joint research in high-performance computing, and collaboration among electric vehicle battery startups. 

India and the EU are also working together in energy and climate action, space, civil nuclear energy and connectivity. The inaugural India-EU Space Dialogue took place in Brussels in November 2025. The EU’s Carbon Border Adjustment Mechanism (CBAM), which imposes an effective carbon charge of 20–35 per cent on Indian exports such as steel, aluminium, cement and fertilisers, remains a point of contention. 

Mobility partnership 

The India-EU mobility partnership agreement is expected to open new pathways for skilled Indian professionals in the EU, with officials saying it will reinforce the economic benefits of the FTA. 

The Indian diaspora in the EU numbers around 1.36 million, including 884,718 non-resident Indians and 478,206 persons of Indian origin. The largest Indian communities in mainland Europe are in Germany (260,864), the Netherlands (228,787) and Italy (206,503). 

In 2024, Indian citizens received the highest number of residence authorisations in the EU for study, research and other purposes. Indian professionals were also the largest recipients of EU Blue Cards, accounting for nearly 20.8 per cent of those issued. Indian students have consistently ranked among the top beneficiaries of Erasmus Mundus scholarships, with about 6,000 awarded over the past two decades. The ninth meeting of the India-EU High-Level Dialogue on Migration and Mobility was held in New Delhi in November 2025.