Business & Economics
India-EU Leaders Fly In to Clinch 18-Year Free-Trade Negotiations
European Commission chief Ursula von der Leyen and European Council president António Costa landed in New Delhi ahead of the 27 Jan 2026 summit where both sides are slated to announce the formal closure of the India-EU FTA talks that have dragged since 2007.
Focusing Facts
- Negotiations launched: June 2007; announcement of ‘talks concluded’ scheduled for 27 Jan 2026—18 years and seven trade commissioners later.
- Two-way trade in 2024 hit €120 billion in goods and €60 billion in services, EU data show.
- The EU bloc accounted for ~US$136 billion in India’s FY 2024-25 goods trade, making it India’s largest partner.
Context
Big-ticket bilateral deals often crystallise when global alignments wobble: much like Japan and the U.S. fast-tracked their 1955 Mutual Defense Assistance Agreement amid Cold-War uncertainty, Brussels and New Delhi are locking in predictability as U.S. tariffs and China’s export controls unsettle supply chains. The prospective FTA signals three deeper currents: (1) India’s gradual shift from 1991 autarky to a web of selective, high-stakes FTAs (ASEAN 2010, UAE 2022, now the EU), (2) the EU’s post-2022 strategy of ‘de-risking’ from both Washington and Beijing by spreading industrial and digital bets, and (3) the re-emergence of South-South & East-West trade corridors—IMEC or otherwise—that bypass traditional Atlantic chokepoints. On a century horizon, if implemented the pact could anchor a Euro-Indo commercial axis comparable in weight to the 1973 EU-ASEAN trade framework, cushioning both against future great-power tariff wars; yet its true significance will rest on whether carbon-border taxes, labour clauses and standards disputes can be managed, or whether, like the stalled TTIP of 2016, political headwinds will turn today’s handshake into tomorrow’s footnote.
Perspectives
Indian mainstream media supportive of the Modi government
e.g., The Times of India, CNBC-TV18, The Indian Express — Portrays the imminent India–EU FTA as a historic, job-creating breakthrough that will ‘derisk’ the world economy and showcase India’s global leadership. Echoes official talking points and emphasises triumph while skimming over unresolved issues such as carbon-border taxes and remaining sensitive sectors still under negotiation.
Indian business press highlighting trade risks
e.g., Business Standard — Warns that although an EU pact would be welcome, high overall tariffs and the missing U.S. deal still threaten India’s exports and currency, so deeper liberalisation is essential. By foregrounding downside scenarios and investor anxieties it downplays diplomatic momentum, reflecting a market-first lens that can seem sceptical of gradualist trade policy.
International wire and foreign newspapers
e.g., Daily Mail Online, The Straits Times, SCMP — Frame the summit mainly as Europe’s bid to lock in a vast new market and diversify supply chains, dubbing the accord the “mother of all deals” amid U.S./China trade tensions. Coverage is Euro-centric, stressing Brussels’ strategic needs and treating India’s outstanding concerns as side issues, which can understate the deal’s unfinished sticking points.