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India and EU have been strategic partners for over two decades, since 2004. The EU has also emerged as a top trading (Euro 120–135 bn) and investment partner for India. The relationship and institutional mechanisms, including the Troika dialogue, have continued to reinforce and deepen for mutual benefit.

Even though in several areas, such as the Bilateral Trade Agreement, progress has been slow and painful, the current disruption in the trans-Atlantic alliance engineered by Trumpian unilateralism has created a certain urgency to close the trade deal at the earliest.

It is expected that during January 2026, the gaps will be addressed and the FTA could even be signed on Jan. 27 or before, when the India-EU Summit takes place in New Delhi. India has also conferred a distinct honour on the EU leadership by inviting them as the Chief Guests on Republic Day, Jan. 26. European Commission President Ursula von der Leyen and European Council Chief Antonio Costa are expected to be the Chief Guests this year.

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This gesture on the part of India, and the fact that under the changed global circumstances and volatility the EU and India have begun to attach greater importance to one another by cementing and frequenting high-level interactions, is significant, despite certain political differences with some members over the Russia-Ukraine war and India’s continued imports of crude from Russia.

However, pragmatism, and the fact that India has become the fastest-growing major economy, surpassing the UK and Japan within a space of one year to become the fourth-largest economy, along with India’s clear articulation of its national interests, have made them realise the need to dispense with rigid positions in their own interests. Besides, India and the UK, as well as several others, have already signed FTAs.

The EC’s FTAs with some European countries, with investment commitments, have also become operational. All these factors, along with the ever-threatening Trumpian tariffs and disenchantment with US policies, have provided reasonable grounds to identify and overcome irritants in India-EU trade and economic relations, including the trade agreement.

High-level contacts have been exceptional in the recent past. It was for the first time that twenty-two EU Commissioners travelled to India. German Chancellor Merz has just concluded a state visit, signing over two dozen agreements. The French President is also expected to visit early this year, as several hundred Rafale fighter aircraft and other equipment are being negotiated and finalised by India and France.

Ajit Doval, National Security Adviser to the Prime Minister of India, and H.E. Emmanuel Bonne, Diplomatic Adviser to the President of the Republic of France, co-chaired the 38th India-France Strategic Dialogue in New Delhi on Jan. 13. During the Strategic Dialogue, India and France reiterated their commitment to the strategic partnership.

Earlier, Minister of External Affairs Dr. S. Jaishankar started off the New Year with his first visit to Europe, France and Luxembourg. Apart from conferring with his counterparts, he also called on French President Macron. In the India-France Year of Innovation, they explored ways to diversify ties in areas of innovation and technology, startups, health, education and mobility, as well as discussed growing cooperation in strategic areas of defence, security, space, civil nuclear energy, maritime security, and the economy. An India-Weimar Foreign Ministers’ meeting was also held.

Dr. Jaishankar appreciated his counterpart’s and President Macron’s comments that both sides, being Chairs of the G7 and BRICS respectively during 2026, would aim to work together to find synergies rather than work at cross purposes. He also said that “our two nations, committed to multipolarity, believe that working together is important for ourselves, and also for stabilising global politics at this stage.” Italian Prime Minister Meloni has invited Prime Minister Modi to visit Italy. The IMEC corridor and multidimensional route have tremendous connectivity and capacity potential between India, the Middle East and Europe, which both sides are serious about exploiting despite immediate roadblocks.

The comprehensive trade and investment deal has dragged on for over two decades. Fortunately, differences on market access, agriculture, automobiles, technical and non-technical barriers to trade, including GIs and the EU’s Carbon Border Adjustment Mechanism, are nearing redressal or are being narrowed to mutual satisfaction. The trade deal will provide smoother access to each other’s markets, especially for Indian labour-intensive products.

The remit of bilateral engagement has expanded to various other strategic domains, including climate change, counter-terrorism, defence and security (including cyber, AI, quantum and new communication technologies such as 6G), the Indo-Pacific, and human resources, education, skill development, innovation and renewables. India and the EU established a Trade and Technology Council in 2023 to enhance cooperation in digital governance, semiconductors, clean energy technologies and resilient supply chains.

Migration and mobility remain major priorities for India. How to immunise global and value supply chains (GVCs) from utter dependencies on certain countries and the arbitrary behaviour of others remains a major area of concern and convergence for both sides. India reiterates that the relationship can be reinforced only if it is based on mutual respect, mutual interests and mutual sensitivity.

India and the EU have a mature strategic mindset driven by mutual interests and can lead to a productive and rewarding strategic partnership, with shared values and democratic architecture, for the 21st century. Both support the rules-based order and multilateral global governance and institutions, which provide a fulcrum for the shape of things to come.

Anil Trigunayat is a former Indian Ambassador to Jordan, Libya and Malta.

The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of New India Abroad.

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