India and the European Union are hopeful of signing their proposed free trade agreement by the end of 2026. The pact could come into force next year…reports Asian Lite News Desk
The proposed India-European Union Free Trade Agreement (FTA) is expected to be signed by the end of 2026 and could come into force next year after the completion of the ratification process, Finland’s Ambassador to India Mikko Kivikoski said on Monday.
Speaking to IANS in New Delhi, Kivikoski said both India and the EU remained hopeful of concluding negotiations before the end of the year.
“At the moment, we hope that the signing will take place by the end of the year. After that, the agreement will need to be ratified by the Indian government and the European Union. That will most likely take a few months, so hopefully it will come into force sometime next year,” he said.
The proposed FTA is part of broader efforts to strengthen economic ties between India and the 27-member European Union. The agreement is expected to provide a framework for expanding trade and investment between the two sides once it is concluded and ratified.
Kivikoski also highlighted the growing importance of defence and security cooperation between India and the EU. He said these areas had gained greater prominence in bilateral engagement following the India-EU Summit held earlier this year.
As an EU member state, Finland is also seeking to expand its defence and security cooperation with India, with Finnish companies already involved in areas linked to emerging technologies and strategic capabilities.
The ambassador pointed to recent cooperation between Nokia and Finnish satellite company ICEYE on sovereign dual-use satellite communication systems. Such systems can be owned and operated by participating nations and have applications across both civilian and strategic sectors.
Beyond trade and defence, Kivikoski identified artificial intelligence, education and innovation as other areas with scope for closer cooperation between India and Finland.
He said the two countries could benefit from combining Finland’s expertise in innovation with India’s large talent pool and scale.
“I think the formula is quite simple. We might be small in size, but we are quite big when it comes to innovation and solutions. India, of course, has the scale and the talent. So, this is quite a good match. Basically, when we combine our strengths, we can achieve big things together,” Kivikoski mentioned.
The comments come as India and the EU continue efforts to advance their trade negotiations. If signed by the end of this year, the agreement would then need to go through the required approval and ratification procedures before taking effect.
The FTA is expected to be an important component of the wider India-EU partnership, alongside cooperation in technology, innovation, defence and security.
