EU and India move to sign free trade agreement by end-2026 after G7 talks

The European Union and India have moved closer to signing a free trade agreement after talks on the sidelines of the G7 summit in Evian. European Commission President Ursula von der Leyen said the bloc will sign the deal by the end of 2026, following a meeting with Prime Minister Narendra Modi. The two sides also said they would accelerate work on an investment agreement and deepen cooperation on security, defence and connectivity.

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According to India's Ministry of External Affairs, Modi held bilateral meetings with von der Leyen and European Council President António Costa at the summit. The ministry said the leaders welcomed the recent conclusion of negotiations for the India-EU free trade agreement and called for its swift signing and implementation. It said the talks were framed as a historic achievement that could unlock trade and investment opportunities and help diversify supply chains.

Von der Leyen said the EU and India had been moving quickly to deliver on commitments after what she described as the conclusion of a major trade deal. She also said the two sides would advance the India-Middle East-Europe Corridor, or IMEC, as part of wider efforts to improve connectivity. German Chancellor Friedrich Merz also invited Modi to visit Germany later this year, adding another diplomatic signal to the meetings in Evian.

The agreement matters because it would link two large economies at a time of geopolitical uncertainty, including the wars in West Asia and Ukraine referenced by the Indian ministry. Trade talks between the EU and India have been under discussion for years, and the latest statements suggest both sides now want to turn political momentum into a formal deal. If signed and implemented, the agreement could affect market access, investment flows and supply-chain planning for businesses on both sides.

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The leaders also discussed the broader India-EU strategic partnership, including a Joint Comprehensive Strategic Agenda endorsed in January 2026. The ministry said the two sides share a relationship based on trust, shared values and a common vision for the future. Their discussions also covered regional and global issues of mutual interest, with both sides welcoming developments in West Asia.

What remains unclear is the exact timing of the signing ceremony and how quickly the investment agreement and other follow-on measures will be completed. It is also not yet clear how far the two sides have resolved any remaining technical or political issues before the trade pact is formally concluded. The next key point to watch is whether the end-2026 target is met and whether the agreement is followed by concrete steps on security cooperation and IMEC.

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