'Living document': India and EU set to seal FTA at Jan 27 summit; what’s on the agenda?

With both sides looking to steady an increasingly unstable world order, India and the European Union are preparing to close a free trade agreement, a defence framework pact and a new strategic agenda when their summit convenes in New Delhi on January 27. Senior diplomatic sources told news agency PTI that the trade pact is set to be a “living document”, open to further refinement even after its signing.

A senior EU official said the bloc sees India as a trusted partner in shaping global governance. “India and the EU can set the agenda for global governance, along with France, in the absence of the US,” the official said, adding that India is “one of the big players that we work with and can rely on.”



The FTA, viewed as a major reset for the relationship, is expected to deliver benefits beyond trade at a time when tariff disruptions linked to Washington’s policy are unsettling supply chains. Issues related to agricultural market access and alcoholic beverages have been resolved, and the two sides are inching towards convergence on rules-of-origin requirements.

Market gaps remain as both sides push to close remaining chapters
However, negotiators are yet to find “landing zones” on steel, cars and the EU’s Carbon Border Adjustment Mechanism, which affects carbon-intensive products such as steel and cement, along with certain regulatory mechanisms, the sources said, PTI quoted. The global environment’s volatility has also pushed both sides to prioritise predictable rules and integrated supply chains.

Twelve chapters of the agreement are already closed, with negotiators now in continuous engagement in New Delhi and Brussels to finish the remaining eight. Prime Minister Narendra Modi and European Commission President Ursula von der Leyen reaffirmed their commitment in September to finalise the pact by December.


The EU is India’s largest trading partner, with bilateral goods trade touching USD 135 billion in 2023-24. EU trade commissioner Maros Sefcovic is expected in New Delhi in early December to push negotiations across the final stretch.

Strategic agenda to expand cooperation from defence to connectivity

The Republic Day visit of the top EU leadership will be followed by the India-EU summit on January 27, a sequence Brussels is watching closely, especially after New Delhi hosts Russian President Vladimir Putin one and a half months earlier.

European Council President Antonio Costa described India as a “pivotal global actor and a natural strategic partner for the European Union”. He said the upcoming summit will help elevate ties on investment, growth, sustainability and innovation through a new joint comprehensive strategic agenda.

The agenda identifies shared priorities across security and defence, prosperity, sustainability, connectivity, and technology and innovation. It places emphasis on resilient supply chains, digital innovation, green transition and cooperation on peace and security, grounded in mutual trust and respect.

Defence cooperation will expand into maritime security, cyber defence and counterterrorism. Connectivity initiatives—including the India-Middle East-Europe Economic Corridor (IMEC), the EU’s Global Gateway and trilateral cooperation with third countries—are expected to receive significant focus.

The EU believes collaboration with India and France will be critical in navigating an uncertain 2027, when China leads BRICS and the UK chairs the G20.



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