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A turning point with Europe

Business Standard

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January 26, 2026

India and the EU move to conclude a much-awaited trade pact while elevating security, defence and mobility ties, signalling a broader strategic alignment amid global uncertainty. Insights from Archis Mohan

A turning point with Europe

European Commission President Ursula von der Leyen and European Council President Antonio Costa, chief guests at the 77th Republic Day parade, inspect a Guard of Honour in New Delhi

As the European Union (EU) leadership — European Council President Antonio Costa and European Commission President Ursula von der Leyen — arrived in New Delhi over the weekend, both sides expressed optimism about sealing what has been billed as the “mother of all trade deals”: The India-EU free-trade agreement (FTA).

However, those familiar with the discussions said that alongside the trade deal, the 16th India-EU Summit on Tuesday is also expected to deliver an equally ambitious agreement to upgrade the India-EU security and defence partnership.

The proposed pact would place India’s security ties with the 27-member bloc on a par with those the EU has with Japan and South Korea. Senior diplomats involved in strengthening India-EU relations over the past year said the partnership, and the FTA, should be assessed on their own merits, rather than through comparisons with other trade agreements India has signed or is negotiating.

The security and defence agreement, the sources said, would lend additional political weight to the relationship.

The Union Cabinet, chaired by Prime Minister Narendra Modi, approved the proposed agreements at its meeting on Saturday, it is learnt. Alongside an announcement on the conclusion of FTA negotiations, India and the EU are expected to sign the new security and defence partnership, covering maritime security, cybersecurity and counterterrorism.

The two sides are also set to formalise a comprehensive mobility framework to facilitate the movement of students, seasonal workers, researchers and highly skilled professionals, promote research and innovation, and conclude a ‘Security of Information Agreement’.

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