European Commission President Ursula von der Leyen on Friday said the EU and India have agreed to push to get a long-pending free trade agreement done this year and that the two sides will strengthen their partnership in the areas of trade, technology, connectivity and defense.
“It is time to be pragmatic and ambitious. And to realign our priorities for today’s realities,” von der Leyen said at an address to a think-tank in New Delhi. Her remarks came ahead of her meeting with Prime Minister Narendra Modi. “You can count on my full commitment to make sure we can deliver,” she said, adding that the “free trade agreement between the EU and India would be the largest deal of this kind anywhere in the world.”.
The European Commission chief is in India on a two-day visit from Thursday and is accompanied by top leaders of the EU member nations. India and the EU relaunched talks on a long-pending free trade agreement in 2021, but issues like market access for products such as cars and alcoholic beverages have been sticking points. The next round of negotiations is set to take place in March.
India and the EU cooperate closely on issues including foreign policy, security and technology. But Brussels is ramping up efforts to finalize the free trade agreement with New Delhi in the face of potential U.S. tariffs. U.S. President Donald Trump has said he is planning to hit goods made in the EU with tariffs of 25%.
The EU is India’s largest trading partner, ahead of the U.S. and China. In 2023-24 fiscal year, exports and imports to the European bloc accounted for more than $130 billion, marking an increase of about 90% over the past decade. Over 6,000 European companies are also present in India.
Von der Leyen said the EU and India have the potential to be one of the defining partnerships of this century. “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 said.
For New Delhi, the trade talks have renewed significance after Trump’s decision to impose reciprocal tariffs on imported goods from countries including India. Last year India signed a trade agreement with Iceland, Liechtenstein, Norway and Switzerland, who comprise the European Free Trade Association, that includes a commitment of $100 billion in investments. The investments are expected to be made across industries including pharmaceuticals, machinery and manufacturing.
