India-EU Summit: Both sides hoping to conclude FTA negotiations but gaps still remain

High Hopes as EU Leaders Head to New Delhi

Top European Union officials are set to descend on New Delhi for a series of pivotal meetings, coinciding with India's Republic Day celebrations. European Commission President Ursula von der Leyen and European Council President António Luís Santos da Costa will serve as chief guests on January 26, followed by co-chairing the 16th India-EU Summit with Prime Minister Narendra Modi the next day. This three-day state visit from January 25 to 27 marks a significant moment in bilateral ties, with both sides eyeing closure on a landmark Free Trade Agreement (FTA) that has been in the works for nearly two decades. The timing underscores the urgency, as negotiators race to bridge remaining divides before the leaders shake hands on progress.

EU High Representative Kaja Kallas arrived in Delhi ahead of the summit, signaling Europe's commitment to ramping up the strategic partnership. Her visit builds on recent diplomatic momentum, including regular high-level talks that have injected fresh energy into the relationship. Indian officials have warmly welcomed these developments, viewing them as a chance to solidify cooperation across trade, technology, and security amid a shifting global landscape.

Progress Amid Persistent Challenges

Negotiations for the India-EU FTA kicked off in 2007 but hit a wall in 2013 over thorny issues like market access, tariffs, intellectual property, and regulatory hurdles. A relaunch in 2022, fueled by post-pandemic supply chain shifts and geopolitical tensions, has brought talks to an advanced stage. Both sides now hope to conclude the core negotiations during the summit, though formal signing might follow later. European leaders have described the deal as nearing its final phases, with von der Leyen noting at the World Economic Forum in Davos that substantial work remains but optimism prevails.

Key sticking points continue to test resolve. The EU pushes for greater access to India's agricultural markets and stricter standards on intellectual property, while India resists what it sees as protectionist measures like the EU's Carbon Border Adjustment Mechanism. Commerce Minister Piyush Goyal's recent trip to Brussels helped narrow gaps, but sensitive areas such as agriculture may require deferring tough decisions to keep momentum alive. von der Leyen remarked, highlighting the scale of opportunities in expanding trade ties.

There is still work to do, but we are in the final stages of this significant scale deal,

Beyond trade, the summit agenda spans technology cooperation, connectivity, climate action, and global security. The India-EU Trade and Technology Council, launched in 2022, has fostered joint efforts in digital and green tech, with its latest ministerial meeting in early 2025 advancing practical collaborations. Initiatives like the Global Gateway and the India-Middle East-Europe Corridor (IMEC) further align interests in infrastructure and sustainable development.

Broader Strategic Partnership Takes Shape

This summit comes against a backdrop of renewed vigor in India-EU relations. The 2020 Roadmap to 2025 has evolved into actionable steps, including trilateral development projects agreed in mid-2025. Both powers see each other as vital partners for diversifying supply chains, especially in critical technologies, as global uncertainties mount. For India, recent FTAs with the UK and EFTA nations pave the way for this EU pact, its largest trading partner. Europe, meanwhile, views India as a counterbalance in an era of trade disruptions.

A new comprehensive strategic agenda is expected to be adopted, guiding future ties in areas like clean energy, space, defense, and skilled migration. Kallas told the European Parliament, emphasizing the opportune timing for deeper economic and security links. Indian External Affairs Minister S. Jaishankar echoed this, stressing the visit's role in building on regular engagements to fortify the partnership. Experts note that while gaps linger, the political will on display could unlock billions in trade potential and foster mutual growth.

I look forward to signing it next week during the EU-India Summit in New Delhi,

The Republic Day spotlight adds symbolic weight, with EU leaders' presence signaling a strong commitment to multilateralism. As talks wrap up, both sides aim to send a clear message of open trade in a fragmented world economy. Ongoing dialogues reflect a pragmatic approach, balancing ambitions with realities on the ground.

In summary, the India-EU Summit holds promise for concluding FTA negotiations and unveiling a fresh strategic roadmap, despite unresolved hurdles on market access and regulations. High-level visits during Republic Day underscore deepening ties in trade, tech, and security, positioning the partnership for long-term gains.