India, EU vow to sign free trade deal by end of 2025

India and the European Union on Friday announced their commitment to signing a free-trade agreement by the end of the year.

The announcement was made during EU President Ursula von der Leyen’s two-day visit to New Delhi, along with a delegation of EU ministers.

The global context calls for EU-India to conclude a free trade agreement, von der Leyen said, adding that she and Prime Minister Narendra Modi agreed “to push to get it done during this year.”

She said, “You can count on my full commitment.”

We have a historic opportunity to bring the India-Middle East-Europe Corridor to life.

It will connect us like never before.

Investing in each other is in our core economic and national interest.

Let’s make it happen.

— Ursula von der Leyen (@vonderleyen) February 28, 2025

Stressing that by the end of 2024, India-EU bilateral trade had tripled over the past two decades to €120 billion, the 13th president of the European Commission, von der Leyen, said, “We will work together on economic growth. The potential is immense. Europe is already India’s biggest trading partner.”

She stated that this proves India-EU businesses and people want to collaborate. She added that the new Federation of European Businesses has united 6,000 EU companies in India, creating 8 million direct and indirect jobs.

“We have tasked our teams to build on this momentum and finalize our Free Trade Agreement before the end of this year. We are expecting a lot from our trade negotiators; we told them they should surprise us,” she added.

von der Leyen said Europe is ready to assume greater responsibility for security and defense and aims to strengthen security cooperation with trusted partners. “That’s why we’re exploring a future security and defense partnership with India.”

Highlighting that the European Commission’s term began in December last year, Modi noted the significance of India being the destination for their first foreign visit and said, “this visit is the first such comprehensive engagement of the European Commission in any single country.”

He remarked that the two-decade-long strategic partnership between India and EU is natural and organic, built on trust, shared democratic values, and a mutual commitment to prosperity and shared progress.

Referring to “a rare astronomical alignment” observed on the evening of 28 February, marking the end of the two-day visit, Leyen said this event is considered outstanding, adding, “The planets are aligned – and so are Europe and India.”

Modi stated that both regions have prepared a blueprint for collaboration in Trade, Technology, Investment, Innovation, Green Growth, Security, Skilling, and Mobility, directing teams to conclude a mutually beneficial Bilateral Free Trade Agreement by year’s end.

She announced the launch of a Joint Task Force on green hydrogen and highlighted the interoperability of digital identities like India’s Aadhaar and the EU digital wallet, which aim to offer services to nearly 2 billion citizens, strengthening EU-India ties further.

Reiterating Modi’s remarks at an AI summit in Paris, she said that working together, Europe and India can shape a future where AI drives positive change in both economies and societies.

The European AI Office and India AI Mission have agreed to deepen cooperation in applying AI to natural hazards, climate change, and bioinformatics.

She emphasized the importance of people for Europe’s competitiveness and acknowledged a gap in digital skills, stating, “India can help to close it. Let us increase student and skilled worker exchanges.”

Modi emphasized the strength of people-to-people connections in the India-EU relationship, announcing a new agreement to increase academia, research, and industry partnerships.

He said, “I believe that India’s young talent and Europe’s innovation can create limitless possibilities.” He welcomed the new visa cascade regime of the EU, which will enhance mobility for India’s talented youth.

On security, Leyen stated that the Indian Ocean is a global trade lifeline, and securing it is crucial. “We should also explore expanding our joint naval exercises, building on our very successful operations in the Gulf of Guinea and the Red Sea.”

She noted that like India, Europe is looking to diversify its military supply and access new capabilities. Modi mentioned strengthening the investment framework, discussing investment protection, and GI agreements. “In the field of Technology and Innovation, a trusted and secure value chain is our common priority.” Both agreed to increase cooperation in semiconductors, AI, high-performance computing, and 6G and also decided to initiate a Space Dialogue.

India-EU agreed to advance the India – Middle East – Europe Economic Corridor or “IMEEC”, which Modi said would serve as an engine driving global commerce, sustainable growth, and prosperity in the future.