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India and the EU wish to conclude a free trade agreement by the end of 2025, Indian Prime Minister Narendra Modi said today after talks with European Commission President Ursula von der Leyen.
“We have asked our teams to work towards a free trade agreement that will benefit both sides by the end of the year,” Modi told reporters.
The desire of both sides to accelerate the conclusion of this agreement is being recorded at a time when U.S. President Donald Trump is threatening his country’s key trade partners with tariff increases.
Earlier, von der Leyen — who is on a two-day visit to New Delhi — also expressed her desire to “accelerate” these negotiations.
“I agreed with Prime Minister Modi to expedite (the talks) and reach an agreement this year,” she said.
“I know it won’t be easy, but I also know that time and determination count and this cooperation comes at a good time for both sides,” von der Leyen estimated.
The EU is India’s largest trading partner, with bilateral trade in the fiscal year 2023/2024 reaching 124 billion euros, a figure that accounts for more than 12% of India’s trade, according to Brussels.
Talks for signing the free trade agreement between the EU and India resumed – after being frozen for eight years – in 2022, but have so far not concluded in a result.
The agreement is delayed as New Delhi hesitates to reduce tariffs on some of its products, while the EU hesitates to relax visa restrictions for some Indian professionals. (28/2/2025)