“The Final Step Is Always the Hardest”: EU Commission President on the Upcoming India-EU Trade Deal

Negotiations between India and the European Union (EU) on a Free Trade Agreement (FTA) have entered the final stage, with an announcement expected in the coming days. Ahead of the 27 January EU-India Summit, European Commission President Ursula von der Leyen said in an exclusive interview that “the final step is always the hardest, but the outcome will be highly beneficial.”

Von der Leyen emphasized that both sides are working diligently to resolve remaining challenges and finalize the agreement. She highlighted that the FTA would eliminate €4 billion in tariffs, providing significant benefits to exporters. She also stressed that India and the EU could work together to uphold a rules-based international system and shape a secure and resilient world.

Strategic and Economic Significance
“Europe and India are the two largest democracies and natural partners,” von der Leyen said. “We share a deep commitment to democracy, human rights, international law, and multilateralism. Strengthening this partnership has never been more important.”

The FTA is expected to be one of the largest agreements globally, covering a market of two billion people. India-EU trade has already nearly doubled over the past decade, exceeding €120 billion annually. The new deal would create sustainable jobs and expand opportunities for exporters of all sizes.

Security and Defense Partnership
Von der Leyen also highlighted that the summit may announce a new defense and security partnership, which could be a game-changer for military industries, maritime security—especially in the Indian Ocean—and secure communications. The collaboration aims to diversify supply chains, strengthen capabilities, and enhance resilience for both regions amid a rapidly changing global security environment.

Resolving Disputes and Climate Alignment
Regarding contentious issues such as CBAM (Carbon Border Adjustment Mechanism), automobiles, and steel, von der Leyen stated that both sides are committed to finding practical, mutually beneficial solutions. “The last mile is always the toughest, but it will be worth it,” she said, emphasizing the broader strategic and economic gains.

Future Initiatives
The EU and India are also exploring initiatives like the India-Middle East-Europe Economic Corridor (IMEC) to enhance trade, energy, and data connectivity. Projects under the EU Global Gateway program, including secure digital corridors and green shipping routes connecting ports such as Mundra and Mumbai, are already underway to support this vision.

Von der Leyen concluded that the FTA and enhanced defense cooperation would not only strengthen bilateral ties but also send a strong signal globally, demonstrating the commitment of India and the EU to stability, rules-based governance, and shared prosperity.