EU and India unveil historic €1.88 trillion trade and security partnership
Written by Frode Skar Financial Journalist.
The European Union and India have announced one of the most ambitious strategic partnerships of the modern era. The agreement combines trade, security, technology and mobility into a single framework valued at €1.88 trillion, marking a decisive shift in how major economies position themselves in an increasingly fragmented global landscape.
A trade agreement between economic giants
The trade pillar of the deal creates an integrated market of nearly two billion people, linking the world’s second- and fourth-largest economies. The agreement is expected to cut up to €4 billion in annual tariffs, benefiting exporters of all sizes on both sides.
By combining India’s scale, services and workforce with Europe’s capital, technology and innovation, the partnership aims to unlock growth that neither side could achieve independently.
Supply chains and strategic autonomy
A core objective of the partnership is to strengthen supply chain resilience and reduce strategic dependencies. Closer integration of manufacturing and logistics is intended to protect both economies from external shocks amid rising geopolitical tensions and trade fragmentation.
A landmark security and defence partnership
For the first time, the EU and India have established a formal security and defence partnership. Cooperation will include maritime security, joint naval exercises, counter-piracy operations, cyber defence, hybrid threat mitigation and counterterrorism.
The agreement also launches dialogue on space security and initiates negotiations on a secure information-sharing framework to deepen mutual trust.
Technology, research and artificial intelligence
Innovation stands at the heart of the partnership. India is moving toward association with Horizon Europe, the world’s largest public research programme, with a budget of approximately €100 billion.
Joint initiatives will focus on health, clean energy, frontier technologies and human-centric, trustworthy artificial intelligence. New EU–India innovation hubs and a startup partnership will support co-creation and high-growth ventures.
Mobility and talent flows
The agreement includes a dedicated mobility framework to facilitate the movement of students, researchers and highly skilled workers. The EU will also open its first legal gateway office in India to support talent mobility aligned with European labour market needs.
Geopolitical implications
The partnership sends a strong signal that the EU and India are choosing cooperation over confrontation in a multipolar world. By linking trade, security and technology, both sides position themselves as stabilising forces in global economic governance.
Our assessment
This agreement represents a structural shift in global economics and geopolitics. The scale and scope of the EU–India partnership will influence global trade patterns, investment flows and security cooperation for years to come, while intensifying competition with other economic blocs that lack comparable strategic depth.
