India and the EU will try to conclude the bilateral free trade agreement (FTA) being negotiated this year itself as this partnership has come at the right moment for the two sides, EU President Ursula von der Leyen has said
The declaration of fast-tracking FTA talks, initiated almost two decades ago, comes at a time when US President Donald Trump has issued fresh tariff threats to the EU and India, too, has been warned of reciprocal tariffs by the US in April.
“A free trade agreement between the EU and India would be the largest deal of this kind anywhere in the world. I am well aware it will not be easy. But I also know that timing and determination counts, and that this partnership comes at the right moment for both of us. This is why we have agreed with Prime Minister Modi to push to get it done during this year,” Leyen said in an address in New Delhi on Friday.
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The EU President further said that India will be a cornerstone of Europe’s foreign policy in the years and decades to come. “I want this visit to be the start of this new era. Prime Minister Modi and I share the same view. It is time to take our EU-India Strategic Partnership to the next level.”
She identified trade & technology, security & defence and connectivity & global partnership as the the three areas which can take our partnership to the next level.
Von der Leyen is in India for a two-day official visit, on February 27-28, and is accompanied by her team of Commissioners.
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Without directly mentioning the US or Russia, the EU chief said countries were weaponising their sources of strength against each other, whether natural resources or new technologies, or economic and military coercion.
“But I believe this modern version of great power competition is an opportunity for Europe and India to reimagine their partnership. In many ways, the EU and India are uniquely placed to respond to this challenge together,” she said. The EU and India have the potential to be one of the defining partnerships of this century, she added.
Elaborating on the importance of the EU-India partnership, Von der Leyen said the bloc was India’s largest trading partner, sitting ahead of both the US and China. “European companies create 8 million jobs here in India. But we could do so much more by improving market access and tackling the barriers to trade. And I believe this can be a launchpad to strengthen co-operation in key sectors which will drive the global economy as we head towards mid-century,” she said mentioning semi-conductors, AI and high performance computing and digital public infrastructure as future areas of co-operation.
