New Delhi, Jan 27 (NationPress) India is on the verge of finalizing a historic defense and trade agreement with the European Union, as a senior EU delegation engaged in talks with Defence Minister Rajnath Singh in New Delhi on Tuesday.

This meeting, conducted at Singh’s office, is part of wider discussions aimed at enhancing strategic, economic, and security relationships between India and the EU.

The discussions occur during the four-day visit of European Commission President Ursula von der Leyen, who arrived in India on January 24.

She is expected to meet with Prime Minister Narendra Modi at the 16th India–EU Summit later today, alongside European Council President Antonio Costa.

This summit is projected to represent a significant milestone in bilateral relations, with officials likely to announce the successful conclusion of negotiations regarding the much-anticipated India–EU Free Trade Agreement (FTA), dubbed the “mother of all trade deals” by officials.

Commerce Secretary Rajesh Agrawal confirmed on Monday that India and the EU have wrapped up negotiations on the FTA, with a formal announcement set for the summit. He characterized the agreement as balanced and forward-looking, asserting that it will greatly enhance trade and investment flows while reinforcing economic integration between both entities.

Projected bilateral goods trade between India and the EU is estimated at $136 billion in 2024–25, making the EU India's most significant trading partner.

The bloc constitutes nearly 17 percent of India’s total exports, whereas exports to India account for approximately 9 percent of the EU’s total overseas shipments.

While negotiations have reached their conclusion, the agreement is anticipated to take effect next year.

Agrawal mentioned that the text of the agreement will undergo legal review over the coming five to six months, followed by formal signing, ratification by the European Parliament, and approval by the Indian Cabinet.

Officials indicated that the summit will also prioritize expanding collaboration in crucial areas such as defense and security, clean energy transition, digital technologies, and people-to-people connections. The defense negotiations with Rajnath Singh are seen as integral to this larger initiative to strengthen the India–EU strategic partnership.

The India-EU FTA is viewed as a pivotal advancement in broadening India’s global trade presence. This agreement could mitigate the effects of high US tariffs by unlocking greater opportunities in the European market, particularly for Indian exports like textiles and jewelry.

One of the most noteworthy results of this pact is the liberalization of India’s automobile sector for European car manufacturers. Import duties on European vehicles are projected to be significantly lowered from the current 110 percent to around 40 percent, making vehicles from brands like Volkswagen, Mercedes-Benz, and BMW more affordable in India.