European Commission President Ursula von der Leyen emphasized that political ties between Europe and India have reached an unprecedented level, highlighting growing strategic alignment following the conclusion of a landmark Free Trade Agreement (FTA) and the launch of a Security and Defence Partnership. Speaking at a banquet at Rashtrapati Bhavan on Tuesday, she said, “The political ties between Europe and India have never been stronger. Our scale gives us global influence, whether in trade, security, or international relations. This is why India has risen to the top of global politics, a development Europe welcomes.”

Von der Leyen stressed the benefits of combining resources, stating, “Imagine what we can achieve if we combine Europe’s and India’s strengths. This is precisely why we are here today. Our FTA marks a decisive moment in our partnership—and this is only the beginning.” She added that the agreements send a clear message in uncertain times: “Amid a fractured world, India and Europe are choosing dialogue, collaboration, and cooperation.”

Beyond trade, she noted the strategic significance of the partnership, saying, “Today is about more than economics. We have launched our security and defence partnership to protect both Indian and European interests, ensure stability, and foster confidence in trade and safety.” She concluded, “With these agreements, we can scale even greater heights and build a new golden road between our continents, paving the way for a brighter future for India and Europe.”

The announcement coincided with the formal conclusion of the long-awaited India-EU FTA, described as the “mother of all deals,” alongside the signing of the Security and Defence Partnership and the adoption of a Joint Comprehensive Strategic Agenda for the next five years. Prime Minister Narendra Modi, von der Leyen, and European Council President Antonio Costa unveiled the pact in New Delhi, with PM Modi calling India-EU cooperation a stabilizing force amid global turbulence.

Under the FTA, the EU will remove tariffs on 99.5% of Indian exports, while India will offer concessions on 97.5% of EU traded goods. Commerce Minister Piyush Goyal and European Commissioner Maros Sefcovic signed the announcement in the presence of the leaders. Von der Leyen described the pact as creating a market of two billion people and a “true win-win” for the world’s second- and fourth-largest economies.

The FTA concludes negotiations that began in 2007. With bilateral trade exceeding USD 136 billion, the EU estimates annual duty savings of €4 billion, while India will reduce or eliminate tariffs on nearly 97% of European goods. PM Modi hailed the agreement as a milestone that will deepen economic ties, boost investment, strengthen supply chains, and create new innovation partnerships, calling India-EU ties a “double engine of growth.”

Alongside trade, the two sides committed to enhanced security and defence cooperation, covering maritime security, defence manufacturing, technology, cybersecurity, counterterrorism, and a potential Defence Industry Forum. Both leaders condemned terrorism and called for sustained international action. The Joint Comprehensive Strategic Agenda will guide collaboration on prosperity and sustainability, technology and innovation, security and defence, connectivity, and global challenges. It also seeks to strengthen investment protection and connectivity through initiatives like the India-Middle East-Europe Economic Corridor and the EU-Africa-India Digital Corridor via the Blue Raman submarine cable system.

President Droupadi Murmu hosted the European leaders at Rashtrapati Bhavan, noting shared democratic values and expressing confidence that the FTA would positively impact citizens’ lives. Costa and von der Leyen visited India from January 25–27 as Chief Guests for the 77th Republic Day celebrations, accompanied by a high-level delegation. Under the agreement, India will remove tariffs on all EU chemical products and duties on 90% of optical, medical, and surgical equipment. The deal comes amid renewed tariff pressures from the US under the Trump administration.