Bharat Dynamics, BEL, GRSE, HAL: Defence stocks in focus as India, EU to sign defence partnership on Tuesday, January 27

This is because Vice President of the European Commission Kaja Kallas said on Monday that the EU-India Security and Defence Partnership will be signed on Tuesday.

President of the European Council Antonio Luis Santos da Costa and the President of the European Commission Ursula von der Leyen are on a state visit to India and were chief guests at the 77th Republic Day celebrations.

They will co-chair the 16th India-EU Summit on January 27, 2026. Kalas said there is strong momentum for closer cooperation with India, and the EU is seizing it.

She said as a symbol of the deepening bond between the two countries, personnel from EU naval operations, Atalanta and Aspides, took part in the parade for the first time.

"Tomorrow, at the Summit, we will take our relationship forward by signing the EU-India Security and Defence Partnership. This will deliver concrete results in areas such as maritime security, cybersecurity, and counterterrorism," she said.

Defence Partnership

The SDP will bring interoperability in the defence domain, and it will open up avenues for Indian firms to participate in the EU's SAFE (Security Action for Europe) programme.

SAFE is the EU's Euro 150 billion financial instrument designed to provide financial support to member states to speed up defence readiness.

At the summit, India and the EU are also set to launch the negotiations for a Security of Information Agreement (SOIA).

The SOIA is expected to boost industrial defence cooperation between the two sides.

What the Commerce Secretary said on Monday

India and the European Union (EU) have concluded official-level negotiations for the proposed free trade agreement, which will help boost two-way commerce and strengthen economic ties between the two sides, Commerce Secretary Rajesh Agrawal said on Monday.

"Official-level negotiations are being concluded, and both sides are all set to announce the successful conclusion of FTA talks on 27th January, Tuesday," the Commerce Secretary said.

Agrawal said the trade deal from the Indian perspective is balanced and forward-looking, which will help in better economic integration of India with the EU.

It will propel trade and investments in both economies, the Commerce Secretary said.

"Negotiations have been successfully concluded. The deal has been finalised," Agrawal said.

Legal scrubbing of the FTA text is underway, and the endeavour will be to complete the processes and sign the pact at an early date, he said.

The deal is expected to be signed this year, and it may come into effect early next year. Implementation of the deal takes time, as it requires approval from the EU Parliament. In India, it requires only the nod of the Union Cabinet.

The pact is finalised after 18 years of negotiations. The talks started in 2007.