European Commission President Ursula von der Leyen, speaking alongside Swedish Prime Minister Ulf Kristersson and Indian Prime Minister Narendra Modi in Gothenburg on 17 May 2026, announced plans to deliver an EU-India investment agreement as the next step after the landmark trade deal concluded in January. She also highlighted deepening security and defence cooperation, including joint naval exercises and work on cyber threats, and stressed the need to sign the trade agreement by year-end.
Von der Leyen described the January trade agreement as 'the mother of all deals,' covering a shared market of over 2 billion people and close to one-quarter of global GDP, with over 90% of tariffs cut. She said the agreement must be signed by the end of 2026 and made operational at record speed, with a large-scale business event planned to help companies benefit from day one.
Turning to investment, von der Leyen said the trade deal 'opened the door' and an investment agreement would 'walk us through it,' helping to de-risk and diversify supply chains amid economic security challenges. She encouraged other member states to follow Sweden's example of building stronger bilateral ties with India, noting Sweden's commitment to double economic exchanges in five years.
On security, von der Leyen recalled the January EU-India Security and Defence Partnership and the first EU-India Security and Defence Dialogue in New Delhi. She announced joint EU-India naval exercises, cooperation on maritime security, countering cyberthreats, protecting critical infrastructure, and increased information-sharing. 'Our cooperation can help bring stability to an unstable world and provide security to our citizens,' she said.
In the technology space, von der Leyen pointed to the EU-India Trade and Technology Council, which is aligning AI governance, working on semiconductors, strengthening supply chain resilience, and ensuring digital interoperability. The next meeting is set for July. She also highlighted the EU-India Space Dialogue, noting Sweden's space base and India's lunar landing, and said space cooperation would strengthen both security and prosperity.
a commitment to sign the trade deal by end of 2026, a planned business event, a push for an investment agreement, joint naval exercises, and a scheduled July TTC meeting. The policy orientation shifts EU-India relations towards a more assertive and comprehensive partnership, moving from trade to investment, security, and technology. The speech was conciliatory and friendly in tone, emphasising shared opportunities and cooperation.
European and Indian businesses stand to gain from tariff cuts and new investment opportunities, but may face adjustment costs. EU member states are encouraged to deepen bilateral ties, potentially benefiting from increased trade. Consumers could see lower prices and more choices, but some sectors may face competition. Security agencies will benefit from enhanced information-sharing and joint exercises, though coordination challenges remain. The overall impact is moderate to major, depending on implementation speed and scope of the investment deal.