India and the European Union are set to announce a trade deal at the 16th India-EU summit in New Delhi on January 27, following nearly two decades of negotiations. The summit is being co-chaired by the President of the European Council, Antonio Luis Santos da Costa, and the President of the European Commission, Ursula von der Leyen, who are on a state visit to India and attended the country's 77th Republic Day ceremony as chief guests.
The announcement is expected to bring the two sides closer on trade, security and the clean energy transition. India and the European Union are preparing to announce the outcome of talks on a long-pending free trade deal during the summit, with senior leaders from both sides participating in the discussions. The meeting is also set to cover trade, security cooperation and mobility arrangements for students and professionals.
The summit discussions are expected to go beyond trade, spanning defence and security cooperation, climate change, critical technologies and a shared commitment to a rules-based global order.
Prime Minister Narendra Modi is hosting von der Leyen and Costa for the talks. Momentum has built in recent weeks, with von der Leyen last week describing the proposed trade deal as a “historic trade agreement” that could eventually create a combined market of nearly two billion people, accounting for close to a quarter of global gross domestic product.
Negotiations on the free trade deal began in 2007, were suspended in 2013 due to differences in ambition and revived in 2022. The announcement would mark a step forward in India–EU ties, which have gathered pace in recent years, while further steps are required before the deal takes effect.
