Archive · 27 Jan 2026
India-EU Agreements on Trade, Defense, and Finance
India and the European Union made some big agreements recently.
First, they talked about trade and found that Indian steel and aluminium exporters still have to pay carbon taxes to the EU, even with a new trade deal.
They agreed to work together to make this easier for Indian companies.
Second, they signed a defense pact to work more closely on things like fighting terrorism and securing the Indo-Pacific region.
They also started talks to share secret information.
Lastly, India's central bank and the EU's financial regulator signed an agreement to make it easier for European investors to put money into Indian financial markets.
All these agreements are meant to make India and the EU better partners.
India-EU Free Trade Agreement does not exempt Indian steel and aluminium exporters from EU's Carbon Border Adjustment Mechanism (CBAM) taxes.
A technical dialogue has been agreed to help Indian industries access EU markets despite CBAM, including accrediting Indian verifiers.
India and the EU signed a defense pact focusing on counter-terrorism, Indo-Pacific cooperation, and joint development of military hardware.
Negotiations for a security of information agreement were launched to facilitate the exchange of classified information.
RBI and ESMA signed an MoU to facilitate capital flows from the EU to Indian financial markets, recognizing six Indian CCPs for re-application under EMIR.
- Who
- India and the European Union
- What
- Signed agreements on trade, defense, and finance
- When
- January 27, 2026
- Where
- India and EU
- Why
- To enhance cooperation and address mutual concerns
- CBAM Impact
- No relief for Indian steel and aluminium exporters
- Technical Dialogue
- Agreed to address CBAM challenges
- Defense Pact
- Focus on Indo-Pacific cooperation and counter-terrorism
- Security of Information Agreement
- Negotiations launched for classified information exchange
- RBI-ESMA MoU
- Facilitates capital flows from EU to India
- CCPs Recognized
- Six Indian CCPs can re-apply for recognition under EMIR
Sources
Budget 2026: Regulatory Framework For Crypto Exchanges On Cards?
Financial sector reforms: Going beyond incrementalism
RBI and ESMA sign MoU on coop and exchange of info for recognition of central counterparties
India, EU ink mega defence and security pact; to focus on boosting cooperation in Indo-Pacific
