India and the European Union want to finalize a free trade agreement by the end of 2025, Indian Prime Minister Narendra Modi said today after talks with European Commission President Ursula von der Leyen.

“We have asked our teams to work towards concluding a free trade agreement that will benefit both sides by the end of the year,” Modi told reporters.

The urgency expressed by both parties to accelerate the deal comes at a time when U.S. President Donald Trump is threatening key trading partners with tariff increases.

Earlier, von der Leyen, who is on a two-day visit to New Delhi, also expressed her desire to “speed up” negotiations.

“We agreed with Prime Minister Modi to accelerate [the talks] and reach an agreement this year,” she stated.

“I know this won’t be easy, but I also know that time and determination matter, and this partnership is coming at the right moment for both sides,” von der Leyen added.

The EU is India’s largest trading partner, with bilateral trade reaching €124 billion in the 2023/2024 fiscal year, accounting for more than 12% of India’s total trade, according to Brussels.

Negotiations for an EU-India free trade agreement resumed in 2022, after being frozen for eight years, but have yet to yield results.

What’s Holding Up the Deal?

The agreement remains stalled as New Delhi hesitates to lower tariffs on certain products, while the EU is reluctant to ease visa restrictions for some Indian professionals.