New Delhi: The proposed India-European Union Free Trade Agreement (FTA) is likely to be signed by the end of 2026 and could come into force next year after completing the required ratification process, Finland's Ambassador to India Mikko Kivikoski said on Monday. Kivikoski expressed optimism over the progress of negotiations between India and the European Union, indicating that both sides are working towards concluding the long-awaited trade agreement before the end of the year.
India-EU FTA Could Be Signed Before 2026 Ends
Kivikoski said the current expectation is that the agreement will be signed by the end of 2026. However, signing would not immediately bring the pact into force as the agreement would subsequently have to go through ratification procedures in India and the European Union. He said the process could take several months, raising the possibility that the FTA may become operational sometime in 2027.
The development could mark a significant step in strengthening economic ties between India and the European bloc and provide a broader framework for trade and investment between the two sides.
Defense and Security Cooperation Gaining Importance
The Finnish ambassador also highlighted the expanding strategic partnership between India and the European Union, particularly in defense and security. According to Kivikoski, these areas have assumed greater importance in bilateral engagement following the India-EU Summit held earlier this year. Finland, as an EU member state is also looking to deepen its cooperation with India in defense and security. The ambassador pointed to the involvement of Finnish companies in emerging areas of strategic and technological collaboration.
Nokia, ICEYE Partnership Highlights Technology Push
Kivikoski cited recent cooperation involving Finnish technology companies as an example of the growing partnership. Nokia and Finnish satellite company ICEYE have announced cooperation on sovereign dual-use satellite communication systems that can be owned and operated by participating nations.
Such collaborations underline the growing intersection of technology, security and strategic infrastructure in India-Finland relations.
AI, Defense and Innovation Emerging as Key Areas
The ambassador also pointed to artificial intelligence, defence, education and innovation as areas with significant potential for deeper India-Finland cooperation. He highlighted the complementary strengths of the two countries, describing Finland as a smaller country with considerable expertise in innovation and solutions, while India brings scale and a large pool of talent. The combination he suggested could create new opportunities for collaboration across emerging technologies and strategic sectors.
With negotiations on the India-EU FTA moving towards a potential year-end conclusion, the agreement could become another major pillar of the broader India-Europe economic and strategic partnership.