India and the European Union aim to conclude a long-awaited free trade agreement by the end of the year, European Commission President Ursula von der Leyen said after talks with Prime Minister Narendra Modi on the sidelines of the G7 summit on Wednesday.
The leaders also agreed to deepen cooperation in security and defence, underscoring efforts to strengthen strategic ties amid growing geopolitical uncertainty. The meeting was also attended by European Council President Antonio Costa.
"Since we have concluded the mother of all trade deals, we have been moving fast to deliver on our commitments. We will sign the Free Trade Agreement by the end of the year. And accelerate work on an investment agreement," Von der Leyen said on social media.
"We will also step up security & defence cooperation. And join forces for better connectivity by advancing IMEC, the India-Middle East-Europe Corridor," she said.
India and the EU announced concluding negotiations for the mega trade deal at their summit meeting in January in New Delhi.
Modi meets Merz on trade, investments, defence
Meanwhile, PM Modi also held talks with German Chancellor Friedrich Merz, focusing on shoring up bilateral cooperation in areas of trade, investments and defence.
In the meeting, held on the sidelines of the G7 summit in this French commune, the two leaders also exchanged views on the situation in West Asia and the Russia-Ukraine conflict.
Modi and Merz welcomed the understanding reached between the US and Iran to end the conflict in West Asia.
"The discussions with Federal Chancellor Merz were very fruitful. We discussed possibilities for how we can further strengthen bilateral cooperation through joint efforts in the areas of trade, investments, circular economy, defence, IT, and other fields," Modi said on social media.
"We also talked about how we can strengthen the cultural relations between our countries," he said. It is not immediately known what the discussions on defence entailed.
India is in the process of procuring six stealth submarines.
German defence major ThyssenKrupp Marine Systems (TKMS) and Mazagon Dock Shipbuilders Ltd (MDL) have been holding price negotiations with the defence ministry for the Euro 5 billion deal to supply six stealth submarines to the Indian Navy.
Shortly after the Modi-Merz talks, the Ministry of External Affairs (MEA) said the two leaders reviewed the progress in bilateral engagements and expressed satisfaction at the renewed momentum in the India-Germany Strategic Partnership.
They also noted the conclusion of the negotiations between India and the European Union for a free trade agreement.
"As India and Germany celebrate the 75th anniversary of diplomatic ties in 2026, the two leaders reaffirmed their commitment to further strengthen cooperation across diverse sectors, including trade and investment, defence and security, green and sustainable development, technology, innovation, education and mobility," it said.
"They welcomed the signing of the Defence Industrial Cooperation Roadmap and the operationalisation of transit visa waiver for Indian nationals transiting through Germany," it added.
The prime minister also held a separate bilateral meeting with South Korean President Lee Jae-myung.
"I had a very meaningful conversation with Lee Jae-myung, President of the Republic of Korea, in Evian. Just two months ago, I welcomed President Lee in India," Modi said in another social media post.
"The two countries are closely cooperating not only in trade and commerce but also in various future high-tech fields," he said.
