As the European Union and India gear up for their highly anticipated summit on January 27, 2026, the spotlight is on the burgeoning economic partnership between the two powerhouses. Announced via an official post on X by the EU Council, the summit promises to build on the already robust trade relations that see the EU and India collectively accounting for nearly one-fifth of global trade.
A Flourishing Trade Relationship
In 2024, bilateral trade in goods between the EU and India surpassed €120 billion, with EU imports from India reaching €71.4 billion and exports to India amounting to €48.8 billion. This marks a significant milestone, as trade volumes have doubled over the past decade—EU imports from India surged by 140%, while exports grew by 58%.
Key sectors driving this growth include machinery and appliances, which top both exports from the EU to India and imports in the reverse direction. Other prominent areas for EU exports are transport equipment and chemicals, while India supplies substantial amounts of chemicals and fuels to the EU.
Beyond goods, trade in services has seen even more explosive growth, exceeding €66 billion in 2024—comprising €37.4 billion in EU imports and €29.2 billion in exports. This represents a staggering 243% increase over the last ten years. Leading services traded include telecommunications, computer, and information services; other business services such as professional and management consulting; and transport services.
The EU stands as India’s second-largest trading partner, making up 11.5% of India’s total trade in goods, underscoring the strategic importance of this alliance. Together, the EU and India represent about 25% of the world’s population, amplifying their collective influence on the global stage.
Investments and Economic Impact
The economic ties extend far beyond trade. In 2024, the EU’s foreign direct investments (FDI) in India exceeded €132 billion, positioning the EU as the leading investor in the country. Over 6,000 European companies operate in India, directly employing around 3 million people and contributing significantly to job creation and economic development.
Ongoing Negotiations and Future Prospects
The summit comes at a pivotal time, following the relaunch of negotiations in June 2022 for a comprehensive free trade agreement (FTA), alongside separate talks on investment protection and geographical indications. These discussions aim to eliminate trade barriers, enhance export opportunities for EU firms, open up services and public procurement markets, safeguard geographical indications, and commit to sustainable development practices. In October 2025, the EU Council approved conclusions outlining a new strategic agenda to deepen cooperation in areas like prosperity, sustainability, technology, innovation, security, defense, connectivity, and global challenges. This builds on the 2020 EU-India connectivity partnership focused on digital, transport, and energy networks.
Furthermore, under the Global Gateway initiative, the EU and its member states have committed over €15 billion for projects in India from 2021 to 2025, fostering sustainable infrastructure and connectivity.
Looking Ahead
The EU-India summit is poised to further solidify this partnership, potentially unlocking new avenues for collaboration amid a shifting global economic landscape. As both entities navigate challenges like geopolitical tensions and climate change, their combined strengths in trade, innovation, and sustainability could set a benchmark for international cooperation.
This article is based on the official announcement from the EU Council and supporting data from their infographics on EU-India trade relations.
