The new deal comes against the background of the free trade agreement that India and the European Union signed in January, said Kristersson, at a news conference attended by Modi and EU chief Ursula von der Leyen.

“We have a joint ambition to double our bilateral trade and investments within five years with current speed,” he said.

“I actually believe it could become reality even sooner.”

Annual trade between the two countries currently stands at US$7.75 billion.

“Under this partnership, we will move forward on key pillars such as green transition, defence, emerging technologies, and people-to-people ties,” said Modi, speaking through a translator.

The two countries also want to develop ties in the fields of security, technology, artificial intelligence and space technology.

The two countries’ space agencies signed a memorandum of understanding to work together on an instrument that will be part of the Venus Orbiter mission, said Kristersson.

Von der Leyen said an EU-India agreement was due to be signed by the end of the year at a major business event for European and EU companies.

“But trade is only half of the equation,” she added. “Our next step must be to deliver an investment agreement.

“And this is the missing piece of the puzzle in our reinforced economic cooperation, especially in a world where supply chains are being reshaped and economic security challenges us as never before.

“Deepening our investment ties will help us to de-risk and to diversify,” said von der Leyen.

Modi’s European tour continues with a visit to Norway on Monday and Tuesday, which will include a summit with the Nordic countries.

The final stage of his tour will be a visit to Italy, where Modi will meet Prime Minister Giorgia Meloni.