India and the European Union are aiming to conclude their long-awaited free trade agreement by the end of the year, European Commission President Ursula von der Leyen said on Wednesday after holding talks with Prime Minister Narendra Modi on the sidelines of the G7 summit.

The meeting, which was also attended by European Council President Antonio Costa, saw the leaders reaffirm their commitment to strengthening economic and strategic ties amid increasing geopolitical uncertainty. Along with the trade pact, both sides agreed to deepen cooperation in security and defence and push forward plans for the India-Middle East-Europe Corridor (IMEC).

"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 had announced the conclusion of negotiations for the mega trade deal during their summit meeting in New Delhi in January.

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Bilateral talks with German Chancellor

Separately, Prime Minister Modi held bilateral talks with German Chancellor Friedrich Merz, with discussions focusing on expanding cooperation in trade, investments, defence, circular economy and information technology. The two leaders also exchanged views on the evolving situation in West Asia and the Russia-Ukraine conflict.

Both leaders welcomed the understanding reached between the United States and Iran aimed at ending 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.

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India-Germany Strategic Partnership

Following the talks, the Ministry of External Affairs (MEA) said the two leaders reviewed progress in bilateral engagements and expressed satisfaction over the renewed momentum in the India-Germany Strategic Partnership.

"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," the MEA 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 met South Korean President Lee Jae-myung on the sidelines of the summit.

"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 a separate social media post.

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"The two countries are closely cooperating not only in trade and commerce but also in various future high-tech fields," he said.

The series of bilateral engagements at the G7 summit reflects India's efforts to deepen trade, technology and strategic partnerships with key global economies amid a rapidly evolving geopolitical landscape.

Published on: Jun 17, 2026 9:04 PM IST