India and EU Reaffirm Commitment to Conclude Free Trade Agreement Amid Ukraine Conflict

On September 4, 2025, Indian Prime Minister Narendra Modi held a joint telephone conversation with European Council President Antonio Costa and European Commission President Ursula von der Leyen. The leaders reaffirmed their commitment to finalize the long-awaited India-European Union (EU) Free Trade Agreement (FTA) by the end of the year. This conversation also addressed the ongoing conflict in Ukraine, emphasizing India's role in fostering peace and stability.

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The discussions highlighted significant advancements in the FTA negotiations, which have gained momentum since their resumption in June 2022 after an eight-year hiatus. Both sides are keen to conclude the agreement, which aims to enhance trade relations and economic cooperation. According to Indian Commerce and Industry Minister Piyush Goyal, the negotiations are in an advanced stage, with the next round of talks scheduled for September 8, 2025. The EU is India's second-largest trading partner, with bilateral trade reaching €120 billion in 2024, marking a nearly 90% increase over the past decade.

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During the call, Modi reiterated India's consistent support for a peaceful resolution to the Ukraine conflict, aligning with the EU's stance on the matter. Von der Leyen emphasized India's crucial role in encouraging Russia to end its aggression, stating, "India has an important role to play in bringing Russia to end its war of aggression and helping create a path towards peace." The leaders underscored the importance of the India-EU Strategic Partnership in addressing global challenges and promoting a rules-based international order.

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The leaders also discussed preparations for the next India-EU Summit, which is expected to take place in early 2026. Modi extended formal invitations to Costa and von der Leyen to visit India for this summit. The agenda will likely include a joint strategic framework aimed at deepening cooperation across various sectors, including trade, technology, and security.

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While the leaders expressed optimism about the FTA, there are concerns regarding potential challenges. Disagreements over market access and tariffs remain, particularly in sectors such as agriculture and textiles. Additionally, the geopolitical landscape, including the impact of U.S. tariffs on Indian goods, complicates the negotiations.

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The Prime Minister's Office stated, "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." Von der Leyen reiterated the urgency of concluding the FTA negotiations, indicating that "progress is needed now."

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• “India has an important role to play in bringing Russia to end its war of aggression and helping create a path towards peace.” — Ursula von der Leyen, President of the European Commission

EU Hails India's Role In Ukraine Peace Talks, Hopes To Conclude FTA Negotiations This Year

• “Reaffirmed our shared commitment for an early conclusion of the India-EU FTA and implementation of the IMEEC corridor.” — Narendra Modi, Prime Minister of India

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As the negotiations continue, both sides are focused on achieving a decisive conclusion to the FTA by the end of 2025. The upcoming talks and the planned summit will be critical in shaping the future of India-EU relations and addressing the broader geopolitical challenges posed by the Ukraine conflict.

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