Synopsis : EU foreign policy chief Kaja Kallas says the India–EU Free Trade Agreement is a strategic move to reduce dependence on China, Russia and the US while strengthening supply chains and investment flows. The pact will coincide with a new India–EU Security and Defence Partnership signing later this month.
As India prepares to host European Union leaders for a high-profile summit later this month, EU High Representative for Foreign Affairs and Security Policy Kaja Kallas has described the upcoming India–EU Free Trade Agreement (FTA) as a decisive strategic choice that can help both sides lower their dependence on China, Russia and the United States.
In an exclusive interview, Kallas said the FTA would unlock a combined market of nearly 2 billion people, accounting for about a quarter of global GDP. The agreement is expected to accelerate investments, strengthen supply chains, and create fresh business opportunities across sectors. At a time when global trade is becoming more fragmented and supply chains are increasingly weaponised, she stressed that deeper India–EU economic cooperation “makes perfect sense.”
Security Partnership to Deepen Strategic Ties
Alongside the FTA, India and the EU are set to sign a new Security and Defence Partnership on January 27, expanding cooperation in maritime security, counter-terrorism, cyber defence and defence industry collaboration. Kallas noted that both India and Europe are increasing defence spending as the global security environment becomes more volatile.
She underlined that while India remains sovereign in defence procurement decisions, Europe is a reliable partner, unlike Russia, whose energy exports and geopolitical actions have created long-term risks for partners.
Balancing Global Geopolitics
Addressing concerns around the Russia–Ukraine war and recent US trade policies, Kallas acknowledged that Europe’s stance is shaped by national security interests. She highlighted that the EU is phasing out Russian fossil fuel imports to reduce geopolitical vulnerability and weaken war financing.
On China, she warned that economic dependence carries security risks, pointing to Beijing’s assertive actions in the Indo-Pacific and its influence over critical supply chains. The EU is strengthening trade defence tools and screening mechanisms to protect strategic sectors.
Technology, Mobility and People-to-People Ties
The partnership also aims to enhance cooperation in artificial intelligence, semiconductors, digital infrastructure and supply-chain resilience through the EU–India Trade and Technology Council. Kallas emphasized the importance of aligning standards and reducing technology dependencies.
She also expressed openness toward Indian students, professionals, entrepreneurs and tourists, noting that people-to-people connections are the backbone of a strong long-term partnership.
With European Commission President Ursula von der Leyen and European Council President António Costa attending India’s Republic Day celebrations, the growing India–EU relationship signals a shift toward a more balanced and resilient global partnership model.
Disclaimer : This article is intended for informational purposes only and does not constitute political, legal, or investment advice. Views expressed are based on publicly available statements and reports.
