India and the European Union are accelerating their strategic partnership amid global uncertainty, with the aim of concluding and eventually signing a long-pending free trade agreement. Deepening political, economic and technological ties reflect a pragmatic convergence of interests and a shared commitment to a rules-based multipolar order. The author of this analysis, Anil Trigunayat, is a former Indian ambassador to Jordan, Libya and Malta and a distinguished member of prestigious think tanks such as the Vivekananda International Foundation and the United Services Institute of India.
India and the European Union have been strategic partners for over two decades, since 2004. The EU has also become one of India’s largest trading (€120-135 billion) and investment partners. Relations, as well as institutional mechanisms, notably the Troika dialogue, continued to strengthen and deepen for mutual benefit. Although progress in several areas, such as the bilateral trade agreement, has been slow and difficult, the current disruption of the transatlantic alliance, caused by Trumpian unilateralism, has created a renewed urgency to conclude the trade agreement as soon as possible. It is expected that during the month of January 2026, the remaining gaps will be filled and the Free Trade Agreement (FTA) may even be signed on or before January 27, when the India-EU summit will take place in New Delhi. India also conferred a distinctive honor on EU leaders by inviting them as chief guests on Republic Day on January 26. European Commission President Ursula von der Leyen and European Council President António Costa are expected to attend as key guests this year.
This gesture by India, as well as the fact that, in a changing and unstable global context, both sides have started attaching greater importance to each other by consolidating and intensifying high-level interactions, is remarkable despite some political differences with some EU member states over the Russia-Ukraine war and India’s continued imports of crude oil from Russia. However, pragmatism – and the fact that India has become the fastest growing major economy, surpassing the UK and Japan in a single year to become the world’s fourth largest economy – as well as India’s clear expression of its national interests, have underlined the need to move beyond rigid positions in the search for mutual benefit. Additionally, India and the UK, along with several other partners, have already concluded FTAs. The European Commission’s FTAs with some European countries, including investment commitments, have also become operational. All of these factors, combined with the continuing threat of Trumpian tariffs and growing disenchantment with US policies, have created a solid basis for identifying and overcoming remaining irritants in India-EU trade and economic relations, including the trade deal itself.
High-level contacts have been exceptional in the recent past. For the first time, twenty-two European commissioners visited India. German Chancellor Merz just completed a state visit and signed more than two dozen agreements. French President Emmanuel Macron is also expected to visit early this year, as negotiations and finalization are underway for several hundred Rafale fighter jets and other defense equipment between India and France. Shri Ajit Doval, National Security Advisor to the Prime Minister of India, and HE Emmanuel Bonne, Diplomatic Advisor to the President of the French Republic, co-chaired the 38th India-France Strategic Dialogue in New Delhi on January 13. During the dialogue, India and France reaffirmed their commitment to the strategic partnership.
Earlier, Foreign Minister Dr. S. Jaishankar started the new year with his maiden visit to Europe, France and Luxembourg. In addition to meetings with his counterparts, he also visited President Macron. As part of the French-Indian Year of Innovation, the two sides explored ways to diversify ties in the areas of innovation and technology, start-ups, health, education and mobility, while also discussing growing cooperation in strategic areas such as defence, security, space, civil nuclear energy, maritime security and economy. An India-Weimar foreign ministers’ meeting was also held. Dr Jaishankar welcomed comments from his counterpart and President Macron that with India and France chairing the BRICS and G7 respectively in 2026, the two sides would seek to work together to find synergies rather than operating at cross purposes. He noted that “as two nations committed to multipolarity, working together is important not only for ourselves, but also to stabilize global politics at this stage.” Italian Prime Minister Giorgia Meloni invited Prime Minister Narendra Modi to visit Italy. The IMEC corridor and its multi-dimensional route offer significant potential for connectivity and capacity between India, the Middle East and Europe, which both sides are keen to exploit despite immediate obstacles.
The Comprehensive Agreement on Trade and Investment has been under negotiation for more than two decades. It is encouraging to see that differences related to market access, agriculture, automobiles, technical and non-technical barriers to trade – including geographical indications (GIs) and the EU’s Carbon Border Adjustment Mechanism (CBAM) – are close to being resolved or are being reduced to mutual satisfaction. The trade deal is expected to facilitate smoother access to both countries’ markets, particularly for labor-intensive Indian products.
The scope of bilateral engagement has expanded to encompass several other strategic areas, including climate change, counter-terrorism, defense and security (including cybersecurity, artificial intelligence, quantum technologies and next-generation communications such as 6G), Indo-Pacific, human resources, education, skills development, innovation and renewable energy. In 2023, India and the EU established a Trade and Technology Council to strengthen cooperation in the areas of digital governance, semiconductors, clean energy technologies and resilient supply chains. Migration and mobility remain key priorities for India. Protecting global chains and value chains (GVCs) from over-reliance on a single country and the arbitrary behavior of others has become a major area of concern and common convergence. India reaffirms that relations can only be strengthened if they are based on mutual respect, mutual interests and mutual sensitivity.
India and the EU possess a mature strategic mindset, driven by converging interests, capable of supporting a productive and enriching strategic partnership based on shared values and a democratic architecture for the 21st century. Both support a rules-based international order and multilateral institutions of global governance, which together provide a fulcrum for shaping the future global landscape.
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