EU and India to Forge Historic Trade Deal, Deepen Security Ties at Upcoming Summit

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The European Union is set to hold a landmark summit with India in January 2026, aiming to seal a long-awaited free trade agreement (FTA) and strengthen security cooperation in the face of a rapidly changing global landscape. The EU's top leaders, European Commission President Ursula von der Leyen and European Council President Antonio Costa, will attend the Republic Day celebrations in New Delhi on January 26, before the India-EU Summit the following day. The negotiations for the FTA have made significant progress, with the two sides focusing on resolving technical issues such as steel and car tariffs, as well as the EU's Carbon Border Adjustment Mechanism. The agreement is expected to be a 'living document', allowing for ongoing work to address any outstanding issues. India and the EU are also set to deepen their security cooperation, including defense industry collaboration, maritime security in the Indo-Pacific, and tackling hybrid and cyber threats. A Security and Defence Partnership and a security of information agreement are expected to be finalized at the summit. The EU and India are well-positioned to drive global governance, particularly in the absence of US leadership. India's chairmanship of BRICS, France's chairmanship of the G7, and the EU's own influence make them key players in shaping the global agenda. The India-EU Summit comes as the world prepares for a potentially challenging 2027, with China leading BRICS and the UK leading the G20. The EU and India are committed to advancing shared priorities, including strengthening resilient supply chains, driving digital innovation, and accelerating the green transition. The EU's trade commissioner, Maroš Šefčovič, is set to visit New Delhi in December to give a push to the FTA negotiations. The two sides are engaged in continuous dialogue to finalize the remaining chapters of the deal. India is the EU's 9th largest trading partner, accounting for 2.2% of the bloc's trade in goods in 2023. The EU is India's largest trading partner, accounting for trade in goods worth €124 billion in 2023. The two-way trade in services was valued at €59.7 billion in 2023. The India-EU Summit is expected to be a significant milestone in the deepening of ties between the two sides, and will be closely watched by EU member states and global leaders.