India and the European Union are poised to announce the conclusion of a free trade agreement (FTA), a defence partnership pact, and a framework for the mobility of Indian professionals at the India-EU summit scheduled next week, diplomatic sources said on Monday.
European Council President Antonio Costa and European Commission President Ursula von der Leyen will be the chief guests at the Republic Day celebrations on January 26, with the summit set for the following day.
A military contingent from the EU, flying the military staff flag along with the banners of Operations Atalanta and Aspides, will participate in the Republic Day parade, marking the first appearance of the EU in such an event outside Europe.
The summit will also address pressing global challenges, including the Russia-Ukraine conflict, the situation in the Middle East, and developments in
Venezuela, the sources added.
The EU delegation will comprise 90 officials, including foreign and security policy chief Kaja Kallas, trade commissioner Maros Sefcovic, and directors general overseeing trade, energy, and industrial policy. The EU is India’s largest trading partner, with bilateral trade in goods at USD 135 billion in 2023-24.
Also read: Exporters say India-EU FTA will boost textiles, pharma
The FTA, billed as India’s most ambitious trade deal in recent history, is expected to significantly enhance commercial ties. Following the announcement, the legal scrubbing process will commence, followed by approval from the European Parliament and European Council before formal signing by trade commissioners.
Negotiations continue on contentious matters such as the Carbon Border Adjustment Mechanism (CBAM) and climate-related standards under the Paris Agreement, with progress also noted on agriculture, wines, spirits, and automobile sector tariffs.
The proposed Security and Defence Partnership (SDP) aims to enhance defence cooperation and interoperability while opening opportunities for Indian firms in the EU’s SAFE (Security Action for Europe) programme, a Euro 150 billion fund to bolster defence readiness.
Additionally, India and the EU are expected to launch negotiations for a Security of Information Agreement (SOIA) and ink a memorandum facilitating the mobility of Indian workers to Europe. France, Germany, and Italy already have mobility partnerships with India, and further agreements are anticipated to deepen cooperation across multiple sectors.
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