The upcoming India–European Union (EU) Summit, scheduled for January 27, 2026, is set to mark a watershed moment in bilateral relations, with both sides expected to announce the conclusion of negotiations on a long-pending free trade agreement (FTA), unveil a new Security and Defence Partnership (SDP), and formalise an arrangement to facilitate the mobility of Indian professionals to Europe. Senior officials familiar with the preparations say the summit could become one of the most consequential engagements between India and the 27-member bloc in recent decades.

The summit follows a high-profile diplomatic gesture a day earlier, when European Council President Antonio Costa and European Commission President Ursula von der Leyen will be the chief guests at India’s Republic Day celebrations on January 26. Their presence underscores the strategic importance New Delhi attaches to its partnership with the EU at a time of heightened global economic uncertainty and shifting geopolitical alignments. It is only the second time India has invited a multilateral grouping to be the chief guest at Republic Day, after ASEAN leaders were honoured in 2018.

Adding to the symbolism, a small EU military contingent will participate in the Republic Day parade, carrying the military staff flag along with the flags of Operations Atalanta and Aspides, the EU’s active naval missions. This will be the first instance of the EU taking part in such a ceremonial event outside Europe, reflecting the growing security dimension of the relationship.

At the heart of the summit is the expected announcement on the successful conclusion of negotiations for the India–EU FTA, billed as the largest trade deal ever for both sides. Talks on the agreement were relaunched in 2022 after a hiatus of nearly ten years and have since gained urgency due to disruptions in global supply chains and the geo-economic churn triggered by evolving trade policies in the United States and elsewhere.

While formal signing and entry into force of the FTA will require additional steps, including legal scrubbing and ratification, the conclusion of negotiations itself would represent a major breakthrough. The EU side is expected to expedite the process of securing consent from the European Parliament and the European Council once negotiations are formally wrapped up, officials said.

Despite substantial progress, last-mile negotiations have been intense, particularly on contentious issues such as the EU’s Carbon Border Adjustment Mechanism (CBAM), which imposes tariffs on imports of carbon-intensive goods. India has consistently described CBAM as a non-tariff barrier that could hurt its exports, while the EU has maintained that the measure cannot be diluted since it applies equally to European producers.

According to officials, the two sides are working towards a “compromise solution” on CBAM that balances the EU’s climate objectives with India’s developmental concerns. The EU has emphasised the need for a level playing field and fair competition, while also signalling support for India’s decarbonisation efforts through cooperation and capacity-building rather than punitive measures alone.

Progress has also been reported in the agriculture chapter of the FTA, traditionally one of the most sensitive areas. Both sides have clarified and mapped out their red lines, with India expressing strong reservations on opening up its dairy and certain farm sectors. At the same time, agreement has been reached on issues related to wines and spirits, and a framework has been finalised for automobiles through tariff-rate quotas. Under this arrangement, a limited quantity of automobiles can be imported at lower tariffs, while higher tariffs will apply once imports exceed the agreed quota.

Another key area under negotiation has been the inclusion of climate-related standards linked to the Paris Agreement. The EU has been pushing for explicit commitments in this regard, while India has sought to retain sufficient policy space to pursue its own development and energy transition pathways. Officials say a compromise is being crafted that acknowledges global climate commitments without constraining India’s domestic policy flexibility.

Beyond trade, the summit is expected to significantly elevate cooperation in security and defence. The proposed Security and Defence Partnership is being described as a political framework that will bring together existing security initiatives and open avenues for collaboration in new areas, such as the protection of undersea cables and other critical infrastructure.

In parallel, India and the EU are set to launch negotiations on a security of information agreement. Once concluded, this would enable India to be recognised as a trusted partner for joint development and production of defence technologies, including drones and air defence systems. It would also allow Indian companies to participate in the EU’s Security Action for Europe (SAFE) programme, a €150-billion initiative aimed at strengthening European defence capabilities through low-cost, long-term loans for procurement.

The timing of this cooperation is significant. EU member states have accelerated their rearmament and defence industrial efforts amid concerns over the reliability of traditional security partners, particularly the United States. The SAFE programme is expected to begin disbursing funds in 2026, creating opportunities for deeper industrial and technological collaboration with partners like India.

Another major deliverable expected from the summit is a memorandum of understanding to facilitate the mobility of Indian professionals. This framework will support EU member states in pursuing their labour and skills mobility agendas through structured cooperation, information exchange and coordination. Seven EU countries, including France, Germany and Italy, already have migration and mobility partnerships with India, and the new arrangement is expected to complement and strengthen these bilateral mechanisms.

In total, the summit is likely to result in the conclusion of around ten agreements and understandings, including one focused on disaster risk management. A joint comprehensive strategic agenda for the period 2026–2030 is also expected to be unveiled, outlining priorities across trade, technology, energy, security and people-to-people ties.

A joint business forum, to be held on the margins of the summit, will bring together political leaders and industry stakeholders from both sides. Addressed by Prime Minister Narendra Modi and Ursula von der Leyen, the forum will focus on leveraging the FTA’s implementation, building resilient and diversified supply chains in critical sectors, and promoting advanced manufacturing anchored in clean technologies.

Finally, the summit will also provide a platform for discussions on pressing regional and global issues. Officials say deliberations are expected on the Russia–Ukraine conflict, developments in Greenland, Venezuela and Iran, and ongoing tensions in West Asia. These conversations are likely to reflect the growing convergence between India and the EU on global governance, strategic autonomy and the need for a more stable and rules-based international order.

Taken together, the outcomes anticipated from the January 27 summit point to a qualitative leap in India–EU relations. By anchoring economic integration, security cooperation and human mobility within a comprehensive strategic framework, both sides appear poised to redefine their partnership for a more uncertain and interconnected world.