India Signs Sweeping Deal With EU, Trump Reaction Awaited
India-West News Desk
NEW DELHI – The European Union and India on January 27 sealed a long awaited free trade agreement, with leaders on both sides calling it a historic breakthrough that reshapes their strategic and economic partnership amid global trade uncertainty.
Prime Minister Narendra Modi, European Council President Antonio Costa and European Commission President Ursula von der Leyen jointly hailed the deal at the 16th India–EU Summit in New Delhi.
“This historic deal is a milestone in the India–EU Strategic Partnership,” the leaders said in a joint statement, adding that it would “significantly enhance bilateral trade and investment ties, drive shared prosperity, strengthen resilient and diversified supply chains, and support sustainable and inclusive growth.”
The agreement, nearly two decades in the making, will see India and the EU gradually eliminate tariffs on most goods traded between them, while carving out exceptions for a limited number of sensitive sectors. Officials described it as one of the most ambitious trade deals either side has concluded.
Meanwhile attention has already turned to Washington. President Donald Trump has not yet reacted publicly to the deal, but the agreement is widely viewed as a strategic hedge against volatile US trade policies and tariff threats. Treasury Secretary Scott Bessent has already criticized the EU for moving ahead with a trade pact with India, signaling likely unease within the White House.
Against that backdrop, Indian and European leaders stressed the importance of rules based global trade. “The World Trade Organization remains central to the multilateral trading system,” the joint statement said, while underlining the need for “meaningful, necessary and comprehensive reform” to ensure it can better serve all members.
The leaders said closer economic ties were especially vital “in a context of global uncertainty and disruptions,” noting that deeper cooperation would help drive growth, job creation, green transition and more resilient and trustworthy supply chains.
They also committed to the full and timely implementation of the FTA and instructed their teams to conclude talks on an Investment Protection Agreement and an Agreement on Geographical Indications at the earliest opportunity. Both sides said they would work to scale up bilateral investments and explore initiatives such as Blue Valleys to boost private sector engagement in key value chains.
Highlighting shared strengths in technology, the statement said India and the EU would deepen collaboration across the entire innovation chain, from research to market deployment. The leaders reaffirmed the India–EU Trade and Technology Council as the cornerstone of their technology partnership and pledged to expand cooperation on Digital Public Infrastructure.
Plans were also announced to strengthen collaboration in emerging technologies, research and innovation, including the creation of EU–India Innovation Hubs and the launch of an EU–India Startup Partnership. The leaders welcomed the renewal of the India–EU Agreement for Scientific and Technological Cooperation until 2030 and agreed to begin exploratory talks on India’s possible association with Horizon Europe.
On climate and energy, the leaders committed to accelerated cooperation under the EU–India Clean Energy and Climate Partnership. They welcomed the launch of an India–EU Task Force on Green Hydrogen and announced that an India–EU Wind Business Summit will be held in 2026.
Connectivity and infrastructure also featured prominently. The statement noted joint projects under the India–EU Connectivity Partnership, supported by the EU’s Global Gateway and India’s Mahasagar initiative, alongside plans for a regular aviation dialogue and deeper cooperation in maritime transport. Leaders also welcomed progress on the India Middle East Europe Economic Corridor, first announced at the 2023 G20 New Delhi Summit.
European leaders welcomed India’s hosting of the AI Impact Summit in New Delhi on February 19 and 20, saying they looked forward to an outcome oriented event.
The summit concluded with leaders addressing the India–EU Business Forum, where CEOs and industry leaders from both sides were urged to make ambitious investments and launch new initiatives to translate political momentum into tangible trade and investment gains.
