European Commission President Ursula von der Leyen has vowed to sign an India-EU trade deal by the end of the year.
The pact, which would create a free trade zone of 2 billion people, and which has been stalled for nearly 20 years, was finally agreed upon in January. At the time, von der Leyen claimed the agreement would be the “mother of all deals.”
Meeting on Monday with Indian Prime Minister Narendra Modi and Swedish Prime Minister Ulf Kristerssonat at the European Round Table for Industry in Gothenburg, the EU chief also promised to make the deal fully operational “at record speed.”
“The trade agreement opened the door; an investment agreement walks us through this door,” she said.
Bilateral trade between India and the EU reached approximately $136 billion in 2024-25, making the bloc India’s largest goods trading partner.
India’s Commerce Ministry said the pact, further deepening economic and strategic ties, will result in export growth to the tune of $76 billion from Indian states to the EU.
Previously, India raised objections to what it sees as non-tariff barriers imposed by the EU and affecting steel, aluminium, and cement exports. The trade deal will enable India to have flexibility on carbon tax, according to reports.
Modi, who arrived in Sweden after visiting the Netherlands, elevated bilateral ties with Stockholm to a ‘Strategic Partnership’.
A similar upgrade to the India-Netherlands relationship was reached during Modi’s meeting with the Dutch prime minister, Rob Jetten. As of 2025, bilateral trade between India and Sweden was estimated at $7.75 billion.
New Delhi and Stockholm also held discussions on widening collaboration in trade and investment, technology and innovation, green transition, space, emerging technologies, and defense and security, apart from people-to-people ties.
Modi pitched India as an investment destination to an array of leading European chief executives, including the leaders of Vodafone, Ericsson, Nokia, TotalEnergies, Nestle, and Unilever.
He urged them to make investment pledges to India over the next five years by invoking the recently concluded India-EU Free Trade agreement.
The Indian prime minister also invited Swedish companies to enhance their presence under the Make in India initiative and held talks with Maersk chairman Robert Maersk Uggla to discuss investment opportunities in ports and logistics.