EU rolls out new India strategy, eyes free trade deal by year-end

With our new EU-India strategy, we are taking our relationship to the next level, Ursula von der Leyen noted. (File photo)

The European Union, on Wednesday, rolled out a “New Strategic EU-India Agenda” aimed at elevating relations with New Delhi across defence, trade, technology, connectivity, and climate change, even as concerns remain over India’s ties with Moscow.

European Commission President Ursula von der Leyen, announcing the initiative in Brussels, said, “Now is the time to double down on partnerships rooted in shared interests and guided by common values. With our new EU-India strategy, we are taking our relationship to the next level.”

The agenda was jointly adopted by the European Commission and EU foreign policy chief Kaja Kallas.

Kallas cautioned that India’s participation in Russian military drills and its continued purchase of Russian oil “stand in the way of closer ties.” She added that upcoming negotiations would aim to resolve these differences, with a joint roadmap expected by the 2026 EU-India Summit.

Hours after the announcement, von der Leyen spoke with Prime Minister Narendra Modi to extend birthday greetings and reaffirm the commitment to finalise a long-pending Free Trade Agreement (FTA) by year-end. Calling Europe India’s largest trading partner, she said, “The free trade agreement with India will be the largest deal of its kind anywhere in the world.”

PM Modi, in response, welcomed the new strategy, saying India was ready to strengthen ties “for mutual prosperity and global stability” and reiterated his invitation for the next summit in India next year.

The EU said the agenda reflects shifting geopolitical realities, with closer ties to India seen as vital for economic security, resilient supply chains, and joint engagement on global challenges.

It identifies five priority areas, including defence cooperation on maritime security, cyber defence, and counterterrorism, alongside collaboration in technology, sustainability, and connectivity projects such as the India-Middle East-Europe Economic Corridor.