Indian Prime Minister Narendra Modi and the European Union have agreed to accelerate efforts to finalize a free trade agreement (FTA) by the end of this year, European Commission President Ursula von der Leyen announced on Friday.
Von der Leyen, accompanied by EU nation leaders, is visiting India at a time of growing geopolitical tensions, with both sides aiming to strengthen their strategic partnership through deeper economic ties.
“We are both seeking to diversify critical value chains,” she stated during a two-day visit that began on Thursday. She called for an ambitious trade and investment deal spanning industries such as batteries, pharmaceuticals, semiconductors, clean hydrogen, and defence.
Talks Resume After Stalled Negotiations
Negotiations for the India-EU FTA resumed in 2021 after an eight-year hiatus. The ongoing discussions cover various issues, including investment protection and geographical indications.
Strong Trade Relationship
The EU is India’s largest trading partner in goods, with bilateral trade increasing by nearly 90% over the past decade to reach $137.5 billion in the 2023-24 fiscal year.
Speaking at an event in New Delhi, von der Leyen emphasized that the current global uncertainties present great opportunities for cooperation between India and the EU.
“We both stand to lose from a world of spheres of influence and isolationism, and we both stand to gain from a world of cooperation and partnership,” she remarked ahead of her meeting with Modi.
“This modern version of great-power competition is an opportunity for Europe and India to reimagine their partnership,” she added.
Both sides are expected to outline key areas of collaboration in climate change, digital transformation, and security cooperation as part of their broader strategic partnership.
