Global Daily Tax News, EU, India Eyeing End Of Year Free Trade Deal, (Sep 23, 2025)

Despite fractious relations between the US and India on trade, the European Commission has issued a statement highlighting the bloc's aspirations to deepen trade ties with India, including through the negotiation of a new free trade agreement by the end of the year.

The European Commission has adopted a communication outlining a "New Strategic EU-India Agenda".

Commission President Ursula von der Leyen said: "Now is the time to focus on reliable partners and double down on partnerships rooted in shared interests and guided by common values. With our new EU strategy, we are taking our relationship to the next level: advancing trade, investment, and talent mobility; strengthening our joint economic security; advancing the clean transition and driving innovation together; [and] deepening our industrial cooperation in defence. Europe is already India's biggest trading partner and we are committed to finalizing our Free Trade Agreement by the end of the year. Europe is open for business. And we are ready to invest in our shared future with India."

The Commission said an EU-India Free Trade Agreement (FTA) would substantially reduce tariff and non-tariff barriers, to unlock major trade and investment flows, describing it as potentially one of the largest agreements of its kind globally. "It would ensure that Indian and European businesses can reap the benefits of stable, rules-based exchanges, more integrated supply chains and new export outlets, supporting trade diversification. The FTA should combine improved market access with clear, simple, predictable, and enforceable rules, as well as robust sustainable development provisions," the Commission said.

The Commission said: "Amid shifting geopolitical realities, closer EU relations are increasingly vital for strengthening economic growth and security, and diversifying supply chains in response to today's uncertain global order. Beyond the bilateral dimension, the new strategic agenda highlights EU-India joint engagement on global issues and with third partners, reflecting India's growing global influence."

Meanwhile, on security, the Commission said the proposed EU-India Security and Defence Partnership will cover cooperation on the Indo-Pacific, addressing hybrid threats, space security, and intensifying engagement on Russia's war against Ukraine, shadow fleets, and sanctions.

The Commission's proposals will be discussed at the EU's Foreign Affairs Council in October.