India and EU Sign Landmark Trade, Defence, and Mobility Pacts

India-EU Partnership Enters a New Era

India and the European Union have successfully concluded negotiations on a comprehensive package of agreements that redefine their strategic and economic relationship. Announced by India’s Foreign Ministry, the deals include a Free Trade Agreement (FTA), a defence and security pact, and a mobility pact, alongside a climate cooperation framework. Together, these agreements aim to deepen economic integration, strengthen global security, and enhance opportunities for students and workers.

Prime Minister Narendra Modi emphasized that the defence pact will push co-development and co-production of technologies, while cooperation with the EU will strengthen the global order. The trade deal, hailed as the largest in India’s history, is expected to transform bilateral commerce and investment flows.

Key Highlights:

Mobility Pact:

• Uncapped mobility for Indian students across EU member states.
• Expanded opportunities for Indian workers and professionals.

Security & Defence Pact:

• Focus on co-development and co-production of defence technologies.
• Enhanced cooperation in intelligence sharing and strategic security.

Free Trade Agreement (FTA):

• EU to open 96.8% of tariff lines; India to open 92.1%.
• EU to cut tariffs on Indian goods to zero in phases over seven years, excluding auto, steel, and agriculture.
• Indian exports of marine products, leather, chemicals, plastics, textiles, apparel, base metals, gems, and jewellery to benefit from zero tariffs.
• India negotiating higher quotas for steel exports to the EU.
• India’s tariffs on EU goods to gradually fall to zero over ten years, covering over 90% of bilateral trade value.

Climate Cooperation:

• Separate pact for EU support in helping India cut carbon emissions.
• Flexibility on carbon taxes if EU offers similar concessions to other nations.

Strategic Significance:

The agreements mark a turning point in India-EU relations, combining economic liberalization with strategic cooperation. They are expected to boost India’s global competitiveness, strengthen EU’s presence in Asia, and create a framework for sustainable growth and shared security.

Sources: India Foreign Ministry statements