Anil Trigunayat
India and the European Union are accelerating their strategic partnership amid global uncertainty, aiming to conclude and possibly sign a long-pending free trade agreement. Deepening political, economic, and technological ties reflect a pragmatic convergence of interests and a shared commitment to a rules-based, multipolar order. The author of this analysis, Anil Trigunayat, is a former Indian Ambassador to Jordan, Libya and Malta and Distinguished Fellow at the prestigious thinks tanks like Vivekananda International Foundation and United Services Institute of India.
India and the European Union have been strategic partners for over two decades, since 2004. The EU has also emerged as one of India’s top trading (EUR 120–135 billion) and investment partners. The relationship, along with institutional mechanisms including the Troika dialogue, has continued to strengthen and deepen for mutual benefit. Although progress in several areas—such as the Bilateral Trade Agreement—has been slow and difficult, the current disruption of the transatlantic alliance, driven by Trumpian unilateralism, has created a renewed urgency to conclude the trade deal at the earliest opportunity. It is expected that during January 2026 the remaining gaps will be addressed, and the Free Trade Agreement (FTA) could even be signed on or before 27 January, when the India–EU Summit takes place in New Delhi. India has also conferred a distinct honour on the EU leadership by inviting them as Chief Guests for Republic Day on 26 January. European Commission President Ursula von der Leyen and European Council President António Costa are expected to attend as Chief Guests this year.
This gesture by India, and the fact that under changing global circumstances and growing volatility both sides have begun to attach greater importance to one another by consolidating and intensifying high-level interactions, is notable despite certain political differences with some EU member states over the Russia–Ukraine war and India’s continued imports of crude oil from Russia. However, pragmatism—and the fact that India has become the fastest-growing major economy, surpassing the United Kingdom and Japan within a single year to emerge as the world’s fourth-largest economy—along with India’s clear articulation of its national interests, have underscored the need to move beyond rigid positions in pursuit of mutual benefit. Moreover, India and the UK, as well as several other partners, have already concluded FTAs. The European Commission’s FTAs with certain European countries, including investment commitments, have also become operational. All these factors, combined with the persistent threat of Trumpian tariffs and growing disenchantment with U.S. policies, have created a solid basis for identifying and overcoming remaining irritants in India–EU trade and economic relations, including the trade agreement itself.
High-level contacts have been exceptional in the recent past. For the first time, twenty-two EU Commissioners travelled to India. German Chancellor Merz has just concluded a state visit, signing more than two dozen agreements. French President Emmanuel Macron is also expected to visit early this year, as negotiations and finalisation are underway for several hundred Rafale fighter aircraft and other defence equipment between India and France. Shri Ajit Doval, National Security Adviser to the Prime Minister of India, and H.E. Emmanuel Bonne, Diplomatic Adviser to the President of the French Republic, co-chaired the 38th India–France Strategic Dialogue in New Delhi on 13 January. During the dialogue, India and France reaffirmed their commitment to the strategic partnership.
Earlier, Minister of External Affairs Dr S. Jaishankar began the new year with his first visit to Europe, travelling to France and Luxembourg. In addition to meetings with his counterparts, he also called on President Macron. As part of the India–France Year of Innovation, the two sides explored ways to diversify ties in innovation and technology, start-ups, health, education and mobility, while also discussing growing cooperation in strategic areas such as defence, security, space, civil nuclear energy, maritime security and the economy. An India–Weimar Foreign Ministers’ meeting was also held. Dr Jaishankar welcomed comments by his counterpart and President Macron that, with India and France chairing the BRICS and the G7 respectively in 2026, both sides would seek to work together to find synergies rather than operate at cross purposes. He noted that “as two nations committed to multipolarity, working together is important not only for ourselves, but also for stabilising global politics at this stage.” Italian Prime Minister Giorgia Meloni has invited Prime Minister Narendra Modi to visit Italy. The IMEC corridor and its multidimensional route offer significant connectivity and capacity potential between India, the Middle East and Europe, which both sides are keen to harness despite immediate obstacles.
The comprehensive trade and investment agreement has been under negotiation for over two decades. Encouragingly, differences related to market access, agriculture, automobiles, technical and non-technical barriers to trade—including geographical indications (GIs) and the EU’s Carbon Border Adjustment Mechanism (CBAM)—are nearing resolution or are being narrowed to mutual satisfaction. The trade deal is expected to facilitate smoother access to each other’s markets, particularly for India’s labour-intensive products.
The scope of bilateral engagement has expanded to encompass several other strategic domains, including climate change, counter-terrorism, defence and security (notably cyber, artificial intelligence, quantum technologies and next-generation communications such as 6G), the Indo-Pacific, human resources, education, skills development, innovation and renewable energy. In 2023, India and the EU established a Trade and Technology Council to enhance cooperation in digital governance, semiconductors, clean energy technologies and resilient supply chains. Migration and mobility remain key priorities for India. Protecting global and value chains (GVCs) from excessive dependence on any single country and from the arbitrary behaviour of others has emerged as a major area of shared concern and convergence. India reiterates that the relationship can be strengthened only if it is grounded in mutual respect, mutual interests and mutual sensitivity.
India and the EU possess a mature strategic mindset driven by converging interests, capable of underpinning a productive and rewarding strategic partnership based on shared values and democratic architecture for the twenty-first century. Both support a rules-based international order and multilateral global governance institutions, which together provide a fulcrum for shaping the future global landscape.
Anil Trigunayat, is the former Indian Ambassador to Jordan, Libya and Malta, and currently heads the West Asia Experts Group at Vivekananda International Foundation.
The article was first published in DECODE39 as India–EU relations at a strategic turning point on January 23, 2026.
Disclaimer: All views expressed in the article belong solely to the author and not necessarily to the organisation.
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Acknowledgment: This article was posted by Guncha Dandona, a Research Intern at IMPRI.
