India and the European Union are set to announce a landmark free trade agreement and finalise a strategic defence partnership during the India-EU summit on Tuesday. Prime Minister Narendra Modi will host European Commission President Ursula von der Leyen and European Council President Antonio Costa, with the talks expected to outline a broader vision to navigate global uncertainties amid shifting trade and security policies.

Von der Leyen, speaking after attending the 77th Republic Day celebrations at Kartavya Path, said a “successful India makes the world more stable, prosperous and secure.” She described the presence of an EU military contingent at the parade as a symbol of deepening security cooperation and confirmed that the Security and Defence Partnership would be signed at the summit.

EU Trade and Economic Security Commissioner Maros Sefcovic also indicated that the free trade agreement (FTA) would be finalised on Tuesday. He called India’s Republic Day invitation a “profound honour” and said it was a fitting moment to strengthen the EU-India partnership through the ambitious FTA. Von der Leyen earlier described the pact as “historic,” creating a market of two billion people accounting for nearly a quarter of global GDP.

Negotiations for the FTA were first launched in 2007 but were suspended in 2013 due to differences in ambition. Talks were relaunched in June 2022, and the deal is expected to bring a qualitative shift in bilateral ties across multiple sectors.

The summit will also focus on climate change, critical technologies, and strengthening the rules-based global order. Officials said the proposed Security and Defence Partnership will enhance interoperability in defence and security, and open opportunities for Indian firms to participate in the EU’s SAFE programme, a €150 billion instrument to boost defence readiness. Negotiations are also expected to begin on a Security of Information Agreement (SOIA), which aims to strengthen industrial defence cooperation.

Another expected outcome is a memorandum facilitating the mobility of Indian workers to Europe, building on existing partnerships with countries such as France, Germany, and Italy. The summit may also cover pressing global issues, including the Russia-Ukraine conflict, with President Costa expected to underline its threat to Europe and the Indo-Pacific, highlighting the importance of a stable international order.

India and the EU have been strategic partners since 2004, with the bloc being India’s largest trading partner in goods. For 2024-25, bilateral trade reached around USD 136 billion, with exports at USD 76 billion and imports at USD 60 billion. Analysts say the summit could mark a major step in consolidating economic and strategic ties between the two sides.