Parliament Question: 16th India-European Union (EU) Summit

**Executive Summary** This report addresses questions regarding the 16th India-European Union (EU) Summit held in New Delhi on 27 January 2026. It outlines the successful conclusion of negotiations for a Free Trade Agreement (FTA) and a Migration and Mobility Partnership, details the efforts made to address concerns regarding the EU's Carbon Border Adjustment Mechanism (CBAM), and describes the new Security and Defence Partnership between India and the EU. The India-EU FTA comes into force after signing and ratification by both parties. The Mobility MOU has already entered into force for seven years from 27 January 2026. **Key Points / Main Content** * **India-EU Free Trade Agreement (FTA)** * Negotiations were concluded at the 16th India-EU Summit on 27 January 2026. * The FTA is a rules-based trade partnership focused on market access, regulatory cooperation, and economic integration. * India secured preferential market access for over 99% of its merchandise exports to the EU in sectors like textiles, chemicals, electronics, and engineering. * The India-EU FTA is to come into force after signing and ratification by both Parties in mutual consultation. * **MoU on Comprehensive Framework of Cooperation on Mobility** * An MoU was signed at the summit to foster research, innovation, address skill gaps, mitigate labour shortages, and promote economic growth. * It supports trade and investment and facilitates mobility of skilled workers, students, researchers, and seasonal workers. * The EU will work with India to establish a pilot European Union Legal Gateway Office (initially focused on ICT) to facilitate legal mobility of workers, researchers, and students. * The MOU has already entered into force for a period of seven years from the date of its signature, i.e. 27 January 2026. * **EU's Carbon Border Adjustment Mechanism (CBAM)** * India secured an Annex on Carbon Border Measures in the India-EU FTA to strengthen cooperation and support efforts to reduce greenhouse gas emissions. * It establishes a Technical Dialogue where India can engage with the EU on verification, accreditation requirements, and the setting of default values under the EU CBAM. * India will receive more beneficial treatment under the EU CBAM through the Most Favoured Nation clause. * **Security and Defence Partnership** * A Security and Defence Partnership was signed, representing the first overarching framework agreement on defence and security cooperation between India and the EU. * It will deepen cooperation across traditional and non-traditional defence and security domains. * Areas of cooperation include maritime security, cyber, space, hybrid, counter-terrorism, non-proliferation, defence industry, Indo-Pacific consultation, emerging technologies, and critical infrastructure resilience. **Impact Analysis** **India and EU** * **Impact:** * Both parties benefit from enhanced trade, economic cooperation, and mobility of skilled workforce and students. * Both countries benefit from strengthened security through the new Security and Defence Partnership. * A Technical Dialogue is established to address the EU CBAM with India. * **Action Required:** * Both parties must sign and ratify the FTA for it to come into force. * Both parties should engage in mutual consultation during the ratification process. * Participate in the Technical Dialogue to address EU CBAM. **Indian Metal and Engineering Exporters** * **Impact:** * Potentially impacted by the EU's Carbon Border Adjustment Mechanism (CBAM). * **Action Required:** * Engage with the EU on verification and accreditation requirements. * Engage with the EU on the setting of default values under the EU CBAM. * Comply with the EU CBAM standards to ensure continued access to the EU market.

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