‘New blueprint for shared prosperity,’ says PM Modi as India-EU conclude FTA talks; Ursula von der Leyen hails ‘win-win’

Firming up 13 outcomes at their summit meeting in New Delhi, India and the EU signed the conclusion of the FTA negotiations, a security and defence partnership, a mobility framework and a joint India-European Union Comprehensive Strategic Agenda 2026-2030.

Prime Minister Narendra Modi, speaking alongside European Council President Antonio Luis Santos da Costa and European Commission President Ursula von der Leyen, said, “Today is another historic occasion, when the world’s two largest democratic powers are adding a decisive chapter to their relations. Today, India has concluded the largest Free Trade Agreement in its history so far.”

India and EU seal the deal

“Today is the 27th, and it’s a happy coincidence that on this very day, India is signing this FTA with the 27 countries of the European Union. This is not just a trade agreement. This is a new blueprint for shared prosperity,” he said.

The joint statement said, “The leaders hailed the successful conclusion of negotiations of the landmark India-EU Free Trade Agreement (FTA). This historic deal is a milestone in the India-EU Strategic Partnership that will significantly enhance bilateral trade and investment ties, drive shared prosperity, strengthen resilient and diversified supply chains, and support sustainable and inclusive growth.”

“The leaders welcomed the signing of the India-EU Security and Defence Partnership, the first such overarching defence and security framework between the two sides that will deepen ties in the domains of maritime security, defence industry and technology, cyber and hybrid threats, space, and counter‑terrorism among others. They also welcomed the launch of negotiations on a Security of Information Agreement that will facilitate the exchange of classified information and pave the way for a stronger cooperation in areas related to security and defence,” it said.

Modi, while underlining that “respect for multilateralism and international norms is our shared priority”, said, “We are in agreement that, to address today’s challenges, the reform of global institutions is essential.”

On the FTA, von der Leyen said, “We did it. We delivered the mother of all deals. We are creating a market of 2 billion people, and this is the tale of two giants, the world’s second and fourth largest economies, two giants who choose partnership in a true win-win fashion, a strong message that cooperation is the best answer to global challenges. This trade will integrate further our supply chain and strengthen our joint manufacturing power.”

“It will cut up to 4 billion euros in annual tariffs for exporters of all sizes, and it will create good jobs for millions of workers here in India and in Europe. At the same time, this agreement will build on the natural complementarity of our economies. It brings together Indian skills, services and scale with Europe’s technology, capital and innovation. It will create levels of growth that neither side can achieve alone, and by combining these strengths, we reduce strategic dependencies at a time when trade is increasingly weaponised,” she said.

On the defence and security partnership, von der Leyen, former Defence Minister of Germany, said, “We are not only making our economy stronger, we are also delivering security for our people in an increasingly insecure world. And today, the world’s two largest economies and democracies launched their first ever Security and Defence Partnership. This is a landmark departure and a trust-based platform for cooperation on the strategic issues that matter most. In doing so, we will help to build each other’s resilience. Europe and India have a long history of cooperation in the defence industry. Now we will enhance this teamwork even further. We will deepen our cooperation on maritime security, for example, joint naval exercises to tackle piracy.”

“And we will step up our work on countering cyber and hybrid threats, which are getting more sophisticated by the day, and our partnership includes a dedicated dialogue on space security, from situational awareness to secure connectivity and stronger cooperation on counterterrorism. Finally, we are launching negotiations on a Security of Information Agreement. Europe and India have chosen to be reliable partners to each other, and this is how we demonstrate the trust we share,” she said.

On the mobility pact, she said, “We both know our greatest wealth is our people. That is why I am so glad that we are signing an agreement on mobility. We will facilitate the movement of students, researchers, seasonal and highly skilled workers. And this is also why we are launching the first EU legal gateway office in India. It will be a one-stop hub to support Indian talent moving to Europe in full alignment with EU Member States’ needs and policies. This is good for our economies. This is good for the friendship between our people, and this openness benefits us all.”

On innovation, she said, “We share core values, the freedom of research and science is paramount for us. Europe and India will always choose science. We will always choose progress the way forward, we will always choose technology at the service of our people. It’s part of who we are, and our cooperation on human-centric, trustworthy artificial intelligence is one of the best examples. So today, I am glad to announce that we are working on India’s association with Horizon Europe, backed by funding firepower of 100 billion euros. Horizon is the world’s largest public research programme, and I can’t wait for our best talents to get to work, to advance health, clean energy, frontier technologies… We will set up EU India innovation hubs. This will help researchers and startups to collaborate on next generation technology. And we are also launching the EU-India startup partnership to boost co-creation and high potential ventures.”.

Costa, on his part, said, “Today is a historic moment. We are opening a new chapter in our relations, on trade, on security, on people-to-people ties.”

“Our summit sends a clear message to the world: At a time when the global order is being fundamentally reshaped, the European Union and India stand together as strategic and reliable partners. Today, we are taking our partnership to the next level as the two largest democracies in the world. We are working hand-in-hand to deliver concrete benefits for our citizens and to shape a resilient global order that underpins peace and stability, economic growth and sustainable development.”

The joint statement touched upon advances in the India‑Middle East‑Europe Economic Corridor (IMEC), among other connectivity partnerships. This assumes significance as it is widely seen as an answer to China’s Belt and Road Initiative. However, the unrest in West Asia has disrupted the progress of IMEC.