India, EU set December deadline for free trade deal, discuss Ukraine and global stability

India and the European Union have committed to concluding their long-anticipated free trade agreement (FTA) by the end of this year, with Prime Minister Narendra Modi and EU leaders Antonio Costa and Ursula von der Leyen reaffirming their shared vision for a rules-based global order. The pledge came during a joint phone call held on 4 September, as both sides continue efforts to deepen strategic and economic ties.

The conversation between Modi and the leaders of the 27-member bloc also addressed regional and international developments, including the ongoing war in Ukraine.

According to an official Indian readout, Prime Minister Modi reiterated India’s consistent position in favour of a peaceful resolution and the swift return of peace and stability to the region.

"The leaders underlined the role of the India-EU strategic partnership in jointly addressing global issues, fostering stability, and promoting a rules-based order for mutual prosperity," the statement said.

Von der Leyen later highlighted on social media the importance of India's engagement in global diplomatic efforts. She stated, "This war carries global security consequences and undermines economic stability. So it is a risk to the entire world", while also welcoming India’s ongoing dialogue with Ukrainian president Volodymyr Zelenskyy.

The phone call, primarily centred around progress on the trade agreement and scheduling the next India–Europe summit, came just ahead of EU trade commissioner Maros Sefcovic's planned visit to New Delhi. Both sides are believed to be making significant progress toward finalising the FTA.

Negotiations for the trade pact were revived in June 2022 after an eight-year hiatus. The Indian readout noted the strong foundations of the partnership: "As the world's largest democratic forces, India and EU share a strong and close relationship built on trust, shared values, and a common vision for the future."

Modi extended an invitation to both Costa and von der Leyen to attend the upcoming India–EU summit, which is expected to be scheduled at a mutually convenient time. Discussions also touched upon the broader India–EU agenda, including areas such as technology, sustainability, defence, innovation, investment, security, and supply chain resilience.

The three leaders jointly welcomed developments in bilateral relations and expressed hope for an early conclusion of the FTA, along with progress on the India–Middle East–Europe Economic Corridor (IMEEC), which was first introduced during the G20 Summit in Delhi in 2023.

"Looking ahead, we plan to agree on a joint strategic agenda at the next EU–India summit, as early as possible in 2026. We also remain fully committed to concluding the free trade agreement negotiations by the end of the year. To achieve this, progress is needed now," said von der Leyen.

India’s engagement with the EU has taken on added significance amid shifting global trade dynamics, including previous disruptions such as the steep tariffs imposed by the former US administration. Leaders agreed to remain in contact as negotiations continue toward finalising the FTA and addressing wider strategic concerns.