The second day of the G7 Summit in Évian, France, took centre stage on Wednesday (June 17, 2026), with world leaders grappling with security risks from artificial intelligence and social media while advancing major trade and defence partnerships.
European Union Commission President Ursula von der Leyen delivered a major announcement: the India-EU Free Trade Agreement will be formally signed by the end of 2026 and made operational quickly.
“The deal will cut tariffs on over 90 percent of goods. European companies will gain access to India’s economy,” von der Leyen said. A bilateral investment agreement is also being fast-tracked to build resilient supply chains.
Modi and Trump Hold Wide-Ranging Talks
Prime Minister Narendra Modi and U.S. President Donald Trump held bilateral meetings on the summit sidelines, marking their first one-on-one conversation in more than a year. The discussion focused on:
- Expediting the bilateral trade deal between India and the United States
- Boosting defence cooperation including technology transfers
- Strengthening partnerships in energy security
- Expanding collaboration on critical minerals sectors
The meeting aims to reset India-US relations after 16 months of diplomatic tensions over tariffs and Washington’s engagement with Pakistan. Experts describe India’s approach as “trust but verify” following recent frictions.
Trump’s Bold G7 Entrance: “I’m the Boss”
U.S. President Trump made a striking entrance to the morning session, declaring to G7 counterparts: “I’m the boss.” The joke sparked laughter from world leaders including UK Prime Minister Sir Keir Starmer as discussions focused on Ukraine’s war aims and fresh sanctions against Russia.
The summit, hosted by French President Emmanuel Macron, has been dominated by Trump’s presence, with leaders uniting to support Ukraine while addressing global economic disruptions and West Asia tensions.
AI and Social Media Take Centre Stage
Digital security dominated Day 2’s agenda. Leaders discussed AI governance and the security risks posed by social media platforms, with Macron emphasising the need to:
- Improve cybersecurity infrastructure
- Protect children from online harms
- Defend democracies against digital manipulation
European officials demanded that tech platforms prove they are “safe by design,” particularly regarding child protection.
The summit also addressed AI adoption, safety standards, and tech sovereignty as critical priorities for the global economy.
India Strengthens European Ties Amid US Reset
While engaging Trump, PM Modi simultaneously expanded partnerships with Europe. He held talks with:
- German Chancellor Friedrich Merz: Focused on technological cooperation, clean energy, and a major submarine defence deal
- EU Commissioner Ursula von der Leyen: Reviewed the India-EU free trade agreement and enhanced market access
- EU Council President Antonio Costa: Strengthened strategic and economic partnerships
This signals India’s significant pivot toward strengthening European ties while balancing its relationship with Washington.
G7 Reduces China Dependence on Critical Minerals
The summit moved to curb dependence on China for critical minerals amid a sovereignty push. Global security, economic disruptions, public health emergencies including an Ebola outbreak in Africa, Ukraine support, and West Asia stability took centre stage.
Historic “Mother of All Deals” Already Signed
The India-EU trade agreement, dubbed the “mother of all deals,” was formally reached in January 2026. Under the agreement:
- 96.6% of EU goods exports to India face tariff elimination or reduction
- European car and wine exports gain easier access to India
- Indian textiles, gems, and pharmaceuticals benefit from reduced barriers
Legal review and EU Parliament ratification will take 5–6 months before full implementation.
What This Means for India
The G7 Summit Day 2 marks a strategic moment for India:
- Trade momentum: The India-EU deal confirmation strengthens economic ties with Europe
- US relationship reset: Modi-Trump talks signal improved bilateral cooperation
- Defence expansion: Critical minerals and energy partnerships enhance strategic autonomy
- Digital leadership: AI security discussions position India as a key voice in tech governance
As Macron winds up the summit with an AI-focused dinner at the Palace of Versailles, the groundwork for deeper India-US-EU partnerships is firmly established.
The 52nd G7 Summit in Évian demonstrates how middle powers like India are weaving “strands of a new world order” through expanded global partnerships
