The EU is India’s largest trading partner, with bilateral trade expected to reach $137.5 billion in 2023-24. Discussions on revitalizing a free trade agreement continue amidst geopolitical tensions. Ursula von der Leyen and Prime Minister Modi are optimistic about concluding a pact this year, emphasizing collaboration against isolationism.
The European Union (EU) stands as India’s foremost trading partner, with bilateral trade projected to reach an impressive $137.5 billion in the fiscal year 2023-24. This marks a significant increase of nearly 90% over the previous decade. Renewed discussions for a free trade agreement, which had previously stalled, began in 2021 and now include critical issues such as investment protection and geographical indications.
Currently, Ursula von der Leyen is visiting India for two days, engaging with leaders from various EU member states. This visit is particularly timely given the escalating geopolitical tensions, offering an opportunity for India and the EU to explore key areas for enhanced strategic cooperation.
During a business conference, Ms. von der Leyen emphasized that challenging circumstances could lead to stronger ties between India and the EU. She stated, “Prime Minister Modi and I have agreed to work toward concluding a free trade pact this year.”
Furthermore, she warned against the dangers of a fragmented global landscape characterized by isolationism, asserting, “We both stand to lose in such a scenario, but we stand to gain from a framework of cooperation and collaboration.” This reflects her outlook that the current dynamics of global power competition present a unique opportunity for both Europe and India to reconsider and fortify their partnership.
In summary, the India-EU trade relationship is poised for significant advancement, with leaders actively pursuing a free trade agreement amidst challenging global circumstances. With projections indicating a substantial increase in trade, there is optimism for enhanced collaboration that could lead to mutual benefits. The statements from Ms. von der Leyen illustrate a shared commitment to strengthening ties, highlighting the importance of cooperation in navigating today’s geopolitical landscape.
Original Source: m.economictimes.com
