New Delhi: The India-EU summit scheduled for January 27 comes as part of the steady strengthening of economic relations between the two sides amid growing uncertainties in global markets triggered by the US tariff turmoil and dramatic geopolitical shifts in the world order.
The summit to be hosted by Prime Minister Narendra Modi and co-chaired by European Council President Antonio Costa and European Commission President Ursula von der Leyen will witness the adoption of a document by both sides to announce the conclusion of FTA negotiations, after which the agreement will go through the necessary legal procedure and ratification by the European Parliament and Council.
The EU, as a bloc, is India’s largest trading partner in goods. For FY 2024-25, India’s total trade in goods with the EU was worth about USD 136 billion, with exports around USD 76 billion, and imports at USD 60 billion.
From 2019 to 2024, India-EU bilateral trade in services exhibited steady growth, with Indian exports increasing from EUR 19 billion in 2019 to EUR 37 billion in 2024. Imports from the EU also saw an increase, reaching EUR 29 billion in 2024.
Prime Minister Narendra Modi and European Commission President von der Leyen had already laid the foundation for cementing ties between the two sides with the establishment of the India-EU Trade and Technology Council in April 2022, during the latter’s official visit to India, as a strategic coordination mechanism to tackle challenges at the nexus of trade, trusted technology, and security.
The is led to an MoU on Semiconductors and an MoU between Bharat 6G Alliance and EU 6G Smart Networks and Service Industry Association were signed in November 2023 and March 2024, respectively.
Other activities include ongoing discussions on Artificial Intelligence, joint research projects in High Performance Computing, and startup collaborations in electric vehicle batteries.
India and the EU also enjoy close ties on energy and climate
The EU has been a partner organisation to the International Solar Alliance, spearheaded by India, since 2018. The Phase III of India – EU Clean Energy and Climate Partnership (CECP), established in 2016, was adopted in November 2024.
European Investment Bank supports India’s climate and energy transition by financing projects in sustainable transport and urban mobility, such as urban rail and metro in some of the Indian cities.
Other areas of cooperation between India and the EU include offshore wind energy, development of gas infrastructure in India, the reduction of methane emissions, investments and transfer of technology.
An agreement for R&D cooperation in peaceful uses of nuclear energy was also signed between India’s Department of Atomic Energy and EURATOM in July 2020.
India – EU Connectivity Partnership was launched in 2021 and focuses on transport, digital, energy networks, and flow of people, goods, services, data and capital. In June 2025, both sides agreed on an administrative arrangement for trilateral development cooperation on joint projects in third countries.
On the sidelines of the G20 Leaders’ Summit in New Delhi in September 2023, leaders of India, the European Union, France, Germany, Italy, Saudi Arabia, the UAE and the US announced an MOU committing to work together to develop a new India-Middle East-Europe Economic Corridor (IMEC).
Besides, the India–EU Common Agenda on Migration and Mobility provides a framework for cooperation on joint objectives, recommendations and actions.
In 2024, Indian citizens received the highest number of authorisations to reside for study, research and other activities in the EU. Indian professionals were also the top recipients of EU blue cards, accounting for nearly 20.8 per cent of the total issued.
(IANS)
