The EU remains India’s largest trading partner, with expected bilateral trade of $137.5 billion for the fiscal year 2023-24. A free trade agreement, which was stagnant for eight years, is now being prioritized. President Leyen’s ongoing visit symbolizes a renewed commitment to cooperation amidst geopolitical challenges, with both leaders aiming to finalize the trade pact this year.
The European Union (EU) has emerged as India’s principal trading partner in goods, with projections indicating that bilateral trade will reach $137.5 billion in the 2023-24 fiscal year, representing an impressive nearly 90% growth over the past decade. Following a prolonged hiatus of eight years, discussions surrounding the India-EU free trade agreement resumed in 2021 and now include vital subjects such as investment protections and geographical indications.
Currently, EU Commission President Ursula von der Leyen is visiting India for two days, accompanied by leaders from several EU nations. This visit occurs amid escalating geopolitical tensions, creating an excellent occasion for Brussels and New Delhi to delineate key areas for enhancing their strategic partnership.
During a recent business conference, President Leyen emphasized that difficult times could forge stronger collaboration between India and the EU. She stated, “Prime Minister Modi and I have agreed to work toward concluding a free trade pact this year.”
Moreover, Leyen pointed out the mutual dangers posed by a divided world characterized by spheres of influence and isolationism, highlighting, “We both stand to lose in such a scenario, but we stand to gain from a framework of cooperation and collaboration.” She also noted that the dynamics of great power competition provide an opportunity for Europe and India to reconsider and fortify their partnership.
In summary, the EU’s strong trade relationship with India is poised for further growth, with expectations of a free trade agreement being finalized this year. President Leyen’s visit represents a pivotal moment for strengthening collaboration amid global uncertainties. Both parties recognize the advantages of cooperative frameworks, setting a promising tone for future relations.
Original Source: m.economictimes.com
