India, EU close in on FTA as negotiations conclude

India, EU close in on FTA as negotiations conclude

Both sides set to announce conclusion of talks as PM Modi and EU leaders, including chief von der Leyen, hold summit today; deal approved by both sides, final text to be ready after ‘legal scrubbing’

A “successful India” is in the world’s interest, said visiting European Union (EU) leaders who attended the Republic Day parade on Monday, as officials here confirmed that negotiations for the EU-India Free Trade Agreement (FTA) have been concluded.

“Official level negotiations are being concluded and both sides are all set to announce the successful conclusion of FTA talks on Tuesday,” Commerce Secretary Rajesh Agrawal told presspersons on Monday.

Separately, sources in the Commerce Ministry said that negotiations were concluded on Friday and the deal was approved by both sides on Saturday. They added that the final text would be readied once it was “scrubbed” by the legal teams of both sides.

The announcement is part of a number of other agreements, including a security and defence partnership, energy cooperation and a mobility agreement, expected to be signed during the EU-India summit on Tuesday to be attended by Prime Minister Narendra Modi, EU Commission President Ursula von der Leyen, and European Council President Antonio Costa.

The EU leaders on Monday witnessed the 77th Republic Day parade where India’s military hardware and marching contingents, particularly those involved in Operation Sindoor in May 2025 against Pakistan, were showcased.

‘A new global order’

The presence of the EU’s top leadership “underscores the growing strength of the India-European Union partnership and our commitment to shared values”, Mr. Modi said in a social media post.

“A successful India makes the world more stable, prosperous and secure,” Ms. von der Leyen said in a post, adding that the world’s largest democracies Europe and India are committed to shaping “a new global order”.

“An opportunity to recall the importance of the action of the EU Naval Forces to enhance maritime security and protect the freedom of navigation, in particular in the Indo Pacific,” Mr. Costa said on social media, steering clear of any contentious references to the war in Europe.

Monday’s parade also saw EU defence commanders taking part in the event for the first time, while the EU Presidents were later hosted at Rashtrapati Bhawan by President Droupadi Murmu.

Significantly, much of the hardware that Ms. von der Leyen and Mr. Costa witnessed in Monday’s parade was Russian-made or designed and has been sanctioned under various EU sanction packages since Russia’s invasion of Ukraine in February 2022.

The EU-India FTA conclusion marks the end of a two-decades-old process, after talks were first launched in 2007. The talks have faltered on a number of occasions, particularly over seemingly irreconcilable issues like market access for “sensitive” European agricultural and dairy items, environmental regulations, investment and immigration.

After a freeze on talks between 2014 and 2022, the talks were relaunched with more pragmatic goals, and both sides have reportedly agreed to set aside sectors where they failed to find common ground.

Once the FTA is announced on Tuesday, officials will complete the legal scrubbing, and it will be sent to all 27 EU states after being translated, before it is ratified by the European Parliament.