Prime Minister Narendra Modi announced that India aims to finalize a free trade agreement with the EU by the end of the year during a meeting with EU chief Ursula von der Leyen. The EU seeks deeper access to India’s market, while India looks for increased investment opportunities. Topics of discussion also included security cooperation and the ongoing conflict in Ukraine, although specific details were not addressed in the post-meeting statement.
On Friday, following a meeting with European Union (EU) chief Ursula von der Leyen, Prime Minister Narendra Modi announced that India plans to finalize a “mutually beneficial” free trade agreement (FTA) with the EU by the end of the year. During her two-day visit to India, von der Leyen emphasized the delegation’s aim to enhance access to India’s expanding market, expressing optimism following productive discussions with Indian officials.
The EU represents India’s largest trading partner, contributing approximately 124 billion euros, accounting for over 12 percent of India’s total trade in 2023. Prime Minister Modi highlighted the potential of the Indian market across various sectors such as defense, agriculture, automobiles, and clean energy, despite high tariffs resulting in limited EU trade market share in India.
EU officials have requested their teams to maintain momentum in talks to conclude the FTA before year-end. Von der Leyen stated, “We told them they should surprise us,” underscoring the EU’s desire for lowered trade barriers on products including cars and spirits, while India seeks increased EU investments in clean energy and urban infrastructure.
The visit aims to establish a future Security and Defence Partnership with India, reflecting an intention to collectively counter common threats such as terrorism, maritime security risks, and cyber-attacks. Enhanced cooperation may also attract businesses aiming to relocate from China, supplemented by initiatives aid in job creation across India.
Discussions included the ongoing war in Ukraine; however, the statements following the meeting did not address it directly. India has maintained its relationship with Russia, a key supplier of military hardware, amidst Western pressures to reconsider this association. The meeting also covered plans to expand defense exchanges and naval exercises, consolidating security partnerships and localizing military manufacturing efforts in India.
Prime Minister Modi asserted that India and the EU share common perspectives on peace and security in the Asia-Pacific region. He emphasized the significance of the unprecedented nature of this visit and the decisions made regarding trade, technology, innovation, green growth, and security, collectively forming a “blueprint for the future.”
India and the EU are set to finalize a free trade agreement by year-end, marking a significant step in strengthening economic ties. The agreement aims to enhance market access and investment opportunities while addressing security cooperation amid regional challenges. As both parties express optimism regarding future engagements, this initiative could lead to transformative impacts across various sectors in India and Europe.
Original Source: www.rfi.fr
