India and the European Union are close to finalising a major free trade agreement, Spain’s Foreign Minister José Manuel Albares said during his visit to New Delhi. The proposed deal is expected to be concluded soon and is being viewed as a strategic step to boost economic security and counter external trade pressures.
Albares stated that negotiations are progressing smoothly, with no significant hurdles remaining. Once finalised, the agreement would create one of the world’s largest free trade markets, covering nearly two billion people and around a quarter of global GDP.
European Commission President Ursula von der Leyen is expected to visit India shortly to resolve the remaining issues, including carbon-related levies and import duties in sectors such as automobiles and steel, ahead of the next India–EU summit.
Trade between India and the EU has expanded rapidly over the past decade, reaching about €120 billion in 2024. Both sides see strong potential to deepen cooperation, particularly in manufacturing and defence.
India’s External Affairs Minister S. Jaishankar highlighted opportunities for stronger defence partnerships, pointing to the Airbus–Tata joint venture to manufacture C-295 aircraft in India. The first aircraft produced in India is expected to roll out before September 2026.