EU Pushes For India Investment Pact Alongside Landmark Trade Deal

European Commission President Ursula von der Leyen has reiterated the European Union's commitment to operationalise the India-EU free trade agreement by the end of the year, while stressing that a separate investment agreement must accompany the trade pact to unlock its full economic potential.

Addressing a joint press meet alongside Prime Minister Narendra Modi and Swedish PM Ulf Kristersson, von der Leyen said the EU and India remain committed to signing and implementing the landmark trade agreement within 2026.

Calling the investment agreement the “missing piece of the puzzle”, the European Commission President said such a pact would help businesses fully capitalise on the market access and opportunities opened up by the trade deal. She also indicated that the signing of the India-EU trade pact would be marked by a large-scale business engagement event involving industry leaders from both sides.

The India-EU FTA, concluded earlier this year after nearly two decades of negotiations, is being described as one of the largest trade agreements globally, covering almost 2 billion people and nearly a quarter of global GDP.

Alongside the trade pact, India and the EU have also been negotiating a standalone investment protection agreement and a pact on geographical indications. Brussels has increasingly positioned the India partnership as central to supply-chain diversification and strategic economic cooperation amid rising geopolitical and trade uncertainties.

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