Prime Minister Narendra Modi will host European Commission President Ursula von der Leyen and European Council President Antonio Costa at the summit, which is also expected to finalize a strategic defense partnership and mobility framework.
The agreements are likely to anchor a broader vision between India and the EU to manage the geopolitical flux caused by Washington’s recent trade and security policies.
Commerce Minister Rajesh Agrawal confirmed on Monday that negotiations on the long-pending FTA have been successfully completed.
“The negotiations have been completed successfully. The deal has been finalized,” Agrawal said, describing the pact as balanced and forward-looking from India’s perspective. He added that the agreement would help India integrate more closely with the European economy, PTI reported.
Von der Leyen, chief guest at India’s Republic Day celebrations, underlined the strategic importance of the partnership. “A successful India makes the world more stable, prosperous and secure, and we all benefit,” she said in a post on X earlier in the day.
According to Agrawal, the legal review of the FTA text is currently underway, with both sides working to complete procedural formalities and sign the agreement at the earliest. The pact is expected to be signed later this year and could enter into force early next year.
While the agreement requires approval from the Union Cabinet in India, it also needs to be ratified by the European Parliament, a process that could take several months.
Commerce and Industry Minister Piyush Goyal has earlier called the India-EU FTA “the mother of all agreements”, reflecting its size and strategic significance. Negotiations began in 2007, making it one of India’s longest-running trade negotiations.
The agreement includes 24 chapters covering trade in goods, services and investments, and involves parallel negotiations on investment protection and geographical indications.
FULL SCHEDULE FOR THE MAIN INDIA-EU SUMMIT
The program will start at 11.10 am on Thursday with a wreath laying ceremony at Raj Ghat, followed by a meeting with Prime Minister Narendra Modi at Hyderabad House. Joint press statements are scheduled for 1:15 p.m.
Later in the day, at 3.05 pm, Von der Leyen will attend a business event at Bharat Mandapam. She is also expected to meet the Vice President at 4.30 pm, followed by a meeting with the President at Rashtrapati Bhavan at 6 pm. Von der Leyen will depart Delhi at 9.30pm, while Costa will leave the capital on Wednesday.
RATE RELIEF FOR LABOR INTENSIVE SECTORS
The pact is expected to provide duty-free or preferential access to a wide range of Indian exports, especially from labor-intensive sectors such as textiles, chemicals, gems and jewelry, electrical machinery, leather and footwear.
Currently, the average EU tariff on Indian goods is around 3.8 percent, but import duties on labor-intensive products hover around 10 percent. India’s weighted average tariff on EU goods is 9.3 percent, with high duties on cars, plastics, chemicals and pharmaceuticals.
Under a typical FTA framework, both sides are expected to reduce or eliminate tariffs on more than 90 percent of traded goods and relax restrictions on services such as telecommunications, transportation, accounting and auditing.
STRATEGIC RELEVANCE AGAINST GLOBAL TRADE DISRUPTION
The deal takes on added significance as global trade disruptions are caused by sharply higher US tariffs, with Indian exporters currently facing tariffs of up to 50 percent in some markets.
The India-EU FTA is expected to help Indian exporters diversify their markets, reduce dependence on traditional destinations and reduce dependence on China for trade and supply chains.
India’s bilateral trade in goods with the EU between 2024 and 2025 amounted to US$136.53 billion (exports worth US$75.85 billion and imports worth US$60.68 billion), making the EU India’s largest trading partner for goods. Services trade in 2024 amounted to $83.10 billion. India will have a trade surplus of $15.17 billion in 2024-25. The EU market accounts for about 17 percent of total Indian exports, and the bloc’s exports to India represent 9 percent of total overseas shipments.
India’s major exports to the EU include petroleum products, electronics, textiles and clothing, machinery, chemicals, pharmaceuticals, gemstones and jewelry, auto parts, shoes and coffee. The main imports from the EU range from machinery and electronics to aircraft, medical equipment, chemicals and plastics.
With the India-EU deal, the NDA government is poised to finalize eight major trade pacts since 2014, including deals with Australia, the United Kingdom, the UAE, the EFTA bloc and Mauritius.
The pact will take shape at a time when high US tariffs have shaken global trade. India faces tariffs of up to 50 percent, making new markets urgent for exporters. The FTA is expected to expand India’s export base and reduce its dependence on China. In addition to FTA, the two are also negotiating a pact on investment protection and geographical indications (GI).
– Ends
With input from authorities
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