EU and India Announce Plans to Finalize Free Trade Agreement by Year-End

The agreement aims to strengthen economic ties and expand cooperation in security and artificial intelligence, as the EU faces new US tariffs.

EU Commission President Ursula von der Leyen and Indian Prime Minister Narendra Modi announced plans to finalize a free trade agreement by the end of 2025 following two days of talks in New Delhi.
The agreement seeks to address trade barriers such as India's high tariffs on EU imports, including automobiles and alcohol, while promoting mutual economic benefits.
The EU is pursuing closer ties with India to counterbalance US-imposed tariffs and reduce reliance on China, aligning with broader geopolitical strategies.
Both sides are exploring enhanced collaboration in security and defense, modeled on EU partnerships with Japan and South Korea, with a focus on regional stability.
A joint initiative to deepen cooperation in artificial intelligence development is also part of the proposed partnership, leveraging India's expertise in software innovation.