The EU and India have signed a major trade and security agreement in New Delhi, a diplomatic win for Brussels after recent transatlantic tensions over Greenland. The pact cuts or eliminates duties on nearly 97% of EU exports to India’s 1.4 billion consumers, improving market access for cars, wine and other goods. Leaders also agreed a security cooperation framework that could include joint defence production, while Brussels uses the deal to diversify partnerships amid geopolitical uncertainty.
From Greenland Spat to Delhi Red Carpet: EU Seals Major Trade and Security Pact With India
EU chiefs Ursula von der Leyen (R) and Antonio Costa were given a red-carpet welcome by Indian Prime Minister Narendra Modi for the signing of a massive trade deal (Sajjad HUSSAIN)(Sajjad HUSSAIN/AFP/AFP)
Presiding over the signing of a major trade and security agreement with Indian Prime Minister Narendra Modi, European Commission President Ursula von der Leyen arrived in New Delhi on a high note, smiling as the deal was formalised.
A Diplomatic and Economic Win
The EU-India pact represents both a diplomatic and economic victory for Brussels after several turbulent weeks marked by tensions with the United States over Greenland. Von der Leyen described the agreement as a tale of “two giants who choose partnership,” calling it “the best answer to global challenges.”
A Warm Reception In New Delhi
New Delhi rolled out the red carpet: the EU leaders were invited guests at India’s Republic Day events and city streets displayed posters bearing their portraits. Portuguese Prime Minister António Costa — whose family ties to Goa were highlighted during the visit — joined members of the EU delegation and was warmly received, with Prime Minister Modi praising him in public remarks.
Trade Details And Market Access
Under the agreement, duties on nearly 97% of European exports to India will be cut or eliminated, easing access for cars, wine, pasta and other goods to India’s market of about 1.4 billion consumers. European officials say the deal will open significant commercial opportunities for manufacturers and exporters across the bloc.
Context: Transatlantic Tensions And Mercosur Setback
The deal also offers Brussels a welcome diplomatic reset after an uncomfortable episode in Davos that involved US demands related to Greenland. Although US pressure eased after high-level talks, EU officials say the episode underscored the value of diversifying partnerships. The India pact comes as another EU trade agreement — with South American bloc Mercosur — faces legal challenges and political divisions at home.
Diversification And Security Cooperation
EU trade commissioner Maroš Šefčovič said the past year had “turbocharged” European trade policy, prompting talks with a range of partners as the EU seeks to reduce strategic dependencies on the US and China. In New Delhi, leaders signed a security cooperation framework alongside the trade deal. India signalled interest in joint production of European military equipment while maintaining its longstanding defence ties with Russia.
What Comes Next
Officials expect the agreement to deepen economic and diplomatic ties between Europe and India, while providing both sides with greater predictability amid global uncertainty. Practical implementation—tariff schedules, regulatory alignment and defence collaboration—will be phased in over coming months and will require follow-up negotiations and domestic approvals.
Key quotes: Von der Leyen: “Two giants who choose partnership.” EU Council statements stressed the need to diversify partnerships and maintain calm, respectful relations with longstanding allies.
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