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India, EU push to conclude free trade agreement by year-end after ‘landmark’ visit

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India and the European Union (EU) have set an ambitious deadline to finalize negotiations for the Free Trade Agreement (FTA) by the end of this year. The decision followed high-level discussions between Prime Minister Narendra Modi and European Commission President Ursula von der Leyen, with the Ministry of External Affairs (MEA) confirming the development on Friday.

Describing the visit as “unprecedented and landmark,” MEA Secretary (West) Tanmay Lal highlighted the extensive scope of the engagements, which saw 20 Union Cabinet Ministers and Ministers of State engaging in discussions with their EU counterparts. The talks covered a broad spectrum of issues, including trade, digital green technology, energy, environment, and connectivity, reflecting the deepening strategic partnership between the two sides.

Von der Leyen, who is on a two-day visit to India alongside members of the European College of Commissioners, has visited India twice before—first for an official bilateral visit in April 2022 and again in September 2023 for the G20 Leaders’ Summit. However, this visit marks a significant first, as it is the first time the European College of Commissioners has traveled outside Europe, underlining the priority placed on EU-India relations.

The discussions saw a strong emphasis on finalizing the Free Trade Agreement, with both Modi and von der Leyen directing their teams to ensure that negotiations are completed within the year. Lal emphasized the significance of this development, calling it a major outcome of the visit.

Alongside the FTA, there was substantial progress in key working groups under the India-EU Trade and Technology Council (TTC), including those focused on strategic technologies, digital governance, clean energy, trade, and investment.

Beyond trade, the visit also facilitated concrete advancements in multiple sectors. Talks progressed on implementing Memorandums of Understanding (MoUs) related to semiconductors, supply chain resilience, and talent exchange.

The Bharat 6G Alliance and EU 6G Smart Networks signed an MoU to deepen cooperation in telecommunications, while the India AI Mission and the European AI Office strengthened ties to foster collaboration in artificial intelligence.

On the clean energy front, India and the EU announced joint funding of €60 million for research projects focused on electric vehicles, sustainable plastics, and green hydrogen. Plans were also unveiled for an India-EU Green Hydrogen Forum and an India-EU Business Summit on Offshore Wind Energy to accelerate cooperation in renewables.

Earlier in the day, von der Leyen underscored the growing importance of India-EU ties, calling India a “pillar of certainty” for Europe in an increasingly uncertain world. She highlighted the need to bolster collaboration in digital technology, artificial intelligence, and defense, while praising Prime Minister Modi’s address at the Paris AI Summit earlier this month.

She expressed confidence that the upcoming AI Summit, which India is set to host, would be a major success, reinforcing the two sides’ commitment to shaping a future where AI serves as a driver of economic and social transformation.

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