EU Commission President Ursula von der Leyen delivered a significant joint statement with Indian Prime Minister Narendra Modi, unveiling an ambitious set of proposals aimed at deepening EU-India cooperation in trade, security, innovation, and mobility.
Historic Trade Agreement Von der Leyen described what she called "the mother of all deals," creating a market of 2 billion people by linking the world’s second- and fourth-largest economies. The trade pact targets cutting up to EUR 4 billion in annual tariffs, integrating supply chains, and boosting joint manufacturing. It aims to leverage India’s scale and skills alongside Europe's technology and capital. The agreement envisages job creation on both sides, but also shifts toward reducing strategic dependencies amid growing concerns over trade weaponization. If implemented fully, this represents a substantial increase in EU economic engagement with India, raising EU trade powers and integration with a strategic partner.
New Security and Defence Cooperation The statement emphasized launching the EU-India security and defence partnership. This trust-based platform covers joint naval exercises, maritime security, cyber threats, hybrid warfare, space security, and counterterrorism. Negotiations on a Security of Information Agreement underline a willingness to enhance institutional ties, signaling EU openness to deepen strategic sovereignty-sharing. This move balances national sovereignty with extended EU-level security cooperation.
Innovation and Talent Mobility Von der Leyen highlighted cooperation on AI, research, and technology innovation through India’s association with Horizon Europe, backed by EUR 100 billion funding. Creation of Innovation Hubs and a Startup Partnership intends to foster collaboration but also commits substantial resources and institutional integration. Furthermore, a new EU Legal Gateway Office in India seeks to facilitate the mobility of students and workers, illustrating a pro-integration and skill-exchange orientation.
Stakeholder Impacts EU producers and exporters stand to benefit from tariff cuts and integrated supply chains, but must adjust to deeper market interconnectedness. Indian workers and highly skilled professionals may gain greater access to EU job markets, though national member states retain policy alignment. EU regulatory bodies will see strengthened roles managing new partnerships, while EU taxpayers indirectly support innovation funding. The security cooperation may raise concerns about sovereignty for some actors but bolsters strategic resilience.
This speech by von der Leyen outlines concrete, multi-sectoral policy proposals that expand EU-India ties through increased economic integration, shared security responsibilities, and collaborative innovation efforts, while balancing national and supranational prerogatives.
← Atlas › News › International trade