EU to sign Free Trade Agreement with India by end of 2026, says Ursula at G7

📌 Summary:

• European Commission President Ursula von der Leyen, after meeting PM Modi on the sidelines of the G7 Summit (Evian), said the EU will sign the India-EU Free Trade Agreement by the end of 2026 and accelerate work on an investment agreement
• Negotiations for the India-EU FTA had concluded earlier in 2026; leaders stressed expeditious signing and implementation to unlock trade and investment and diversify supply chains amid a turbulent geopolitical context (wars in West Asia and Ukraine)
• The two sides will step up security and defence cooperation and advance connectivity via IMEC (India-Middle East-Europe Economic Corridor)
• PM Modi also met European Council President Antonio Costa; leaders recalled the 16th India-EU Summit (January 2026) and the Joint India-EU Comprehensive Strategic Agenda, reaffirming a resilient multipolar global order
• German Chancellor Friedrich Merz invited Modi to visit Germany for the 8th India-Germany Inter-Governmental Consultations (IGC)

🎯 UPSC Relevance: GS2 - bilateral/regional groupings and agreements affecting India's interests; India-EU strategic partnership, trade diplomacy and connectivity initiatives (IMEC).

📝 Prelims Facts:

• 16th India-EU Summit was held in India in January 2026
• IMEC = India-Middle East-Europe Economic Corridor
• The 2026 G7 Summit was held in Evian, France
• IGC = Inter-Governmental Consultations (India-Germany mechanism)

🔑 Key Term: Free Trade Agreement - a pact reducing tariffs and trade barriers between partners to boost trade and investment flows.