India and the EU have agreed to finalize a crucial free trade agreement by the end of this year, following a meeting between Prime Minister Modi and European Commission President von der Leyen. The discussions aim to enhance cooperation in trade, technology, and defense. The bilateral agreement is set to be one of the largest globally, with negotiations resuming after being delayed since 2021 due to market access issues.
India and the European Union (EU) have reached an agreement to finalize a long-awaited free trade agreement by the end of this year. During a meeting in New Delhi, Indian Prime Minister Narendra Modi and European Commission President Ursula von der Leyen emphasized the need to enhance cooperation in various sectors, including trade, technology, connectivity, and defense. They directed their negotiating teams to expedite the conclusion of this bilateral deal, which Modi called a natural extension of the partnership based on shared democratic values.
The European Commission President highlighted that this free trade agreement would represent one of the largest deals globally. The urgency to finalize the agreement is further driven by the anticipated tariffs proposed by the United States on European goods. Von der Leyen remarked that, “It is time to be pragmatic and ambitious. And to realign our priorities for today’s realities,” underscoring the commitment to delivering results during her visit to India.
Previous negotiations between India and the EU resumed in 2021 after being stalled, with lingering issues around market access for sectors such as automobiles and alcoholic beverages. The next round of discussions is scheduled for March. The EU is India’s largest trading partner, with trade exchanges exceeding $130 billion in the 2023-24 fiscal year, showing a 90% increase over the past ten years.
President von der Leyen emphasized the opportunity for a transformative partnership between India and the EU, stating, “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.” The significance of these trade talks has increased, particularly in light of U.S. tariff policies that may affect Indian goods as well.
Additionally, India recently signed a trade agreement with the European Free Trade Association, which highlights its commitment to securing $100 billion in investments across various industries, such as pharmaceuticals and manufacturing. Such agreements signal India’s increasing engagement with global markets and its potential for future growth in trade with Europe.
India and the EU have taken significant steps towards finalizing a major free trade agreement, aiming to enhance their partnership across several sectors. With the potential implications of U.S. tariffs influencing these negotiations, both leaders express optimism about transforming their strategic relationship. This agreement could symbolize a new era in India-EU relations, paving the way for substantial economic benefits and cooperation moving forward.
Original Source: apnews.com
