Top News

India, EU set to 'shape global order' today with the conclusion of ‘mother of all deals’
ET Bureau | January 27, 2026 6:19 AM CST

Synopsis

India and the European Union will soon finalize a Free Trade Agreement. A Security and Defence Partnership Agreement will also be signed at their upcoming summit. This marks a significant step in strengthening ties between the two blocs. The agreements aim to boost trade and enhance security cooperation. Both sides express optimism about the future of their partnership.

PM Modi and Ursula von der Leyen during Republic Day, 2026 parade on Monday.
New Delhi: India and the European Union are all set to announce the conclusion of negotiations for the much-anticipated Free Trade Agreement (FTA) that will come as a relief to exporters hit by the US tariffs and conclude the Security and Defence Partnership Agreement at their summit here on Monday.

A key outcome of the summit will be the signing of the Security and Defence Partnership by the EU'' HRVP Kaja Kallas and defence minister Rajnath Singh. This marks only the third such comprehensive agreement EU has signed in Asia, following Japan and the Republic of Korea. India and EU will adopt a new Joint Strategic Agenda to steer the partnership beyond the existing roadmap.

India-EU security and defence ties deepened significantly in 2025, marked by the Leaders' Statement from the February College of Commissioners' visit to India, which agreed to explore a Security and Defence Partnership (SDP).


"The display of the flags of the EU, the EU Military Staff, and our maritime missions - ATALANTA and ASPIDES - at India's Republic Day is a powerful symbol of our deepening security cooperation. It will culminate tomorrow in the signature of our Security and Defence Partnership," Ursula von der Leyen, President of the EU Commission, wrote on X on the eve of the summit while attending the Republic Day Parade. von der Leyen and Antonio Costa, President of the European Council, were chief guests at the Republic Day celebrations.

After attending the 'At Home' event, von der Leyen said, "Thank you for hosting us on Republic Day, President @rashtrapatibhvn... Europe and India are the world's largest democracies, committed to working together to shape a new global order. This is why we are here to take our partnership to new heights."

In Davos, von der Leyen stated EU is close to finalising FTA with India and noted that some describe it "the mother of all deals".

Meanwhile, Maros Sefcovic, EU Trade Commissioner, said in an interview with Euro News that India and the EU are very close to signing the much-anticipated FTA. Speaking to Euro News, Sefcovic said, "We are checking the latest documents, we are exchanging the last numbers, and I believe that we are very, very close."


READ NEXT
Cancel OK