NEW DELHI — On Friday, the President of the European Commission, Ursula von der Leyen, expressed that the European Union (EU) and India have committed to striving for the conclusion of a long-awaited free trade agreement within the year. Moreover, both parties are set to enhance their collaboration in sectors such as trade, technology, connectivity, and defense.
“It’s time for practicality and ambition, and to adjust our priorities in line with the current circumstances,” von der Leyen stated during a keynote speech at a think-tank in New Delhi. Her statement was made ahead of an important meeting with Indian Prime Minister Narendra Modi.
Von der Leyen assured, “You can count on my complete dedication to ensure we deliver,” noting that the prospective free trade agreement between the EU and India could become the largest deal of its kind globally.
The President is on a two-day visit to India, beginning Thursday, accompanied by top officials from EU member countries.
India and the EU rekindled talks in 2021 regarding a long-pending free trade agreement, yet challenges such as market access for automobiles and alcoholic products remain contentious. Upcoming negotiations are scheduled for March.
Collaboration between India and the EU extends to areas like foreign policy, security, and technological advancement. Nevertheless, Brussels is intensifying its efforts to conclude the free trade agreement with New Delhi, especially in light of potential tariffs from the United States. President Donald Trump has previously indicated plans to impose a 25% tariff on goods manufactured in the EU.
For India, the EU represents its largest trading partner, surpassing the U.S. and China. During the 2023-24 fiscal year, trade activities with the European bloc, encompassing exports and imports, exceeded $130 billion, reflecting a remarkable 90% increase over the past decade. Additionally, India hosts over 6,000 European enterprises.
Von der Leyen remarked on the potential of the EU-India relationship to become one of the pivotal partnerships of the twenty-first century.
“I envision this visit as the beginning of a new era. Prime Minister Modi and I are unified in our perspective—it’s time to elevate our EU-India Strategic Partnership,” she mentioned.
For Delhi, trade discussions gain renewed importance following President Trump’s decision to enforce reciprocal tariffs on imports from multiple nations, including India.
Last year, India brokered a trade agreement with the European Free Trade Association members—comprising Iceland, Liechtenstein, Norway, and Switzerland—pledging $100 billion in investments. This investment aims to boost industries including pharmaceuticals, machinery, and manufacturing.
