Indian Prime Minister Narendra Modi said on Friday that India and the European Union were set to conclude a free trade agreement later in the year.
He made the comments during a visit by European Commission President Ursula von der Leyen, who arrived in India on Thursday in a bid to boost economic ties.
The EU has been ramping up efforts to achieve a free trade agreement with India ahead of possible US tariffs.
What did Modi say about talks with the EU?
India’s prime minister said New Delhi and Brussels were aiming to strike a “mutually beneficial” deal.
“We have asked our teams to work out a mutually beneficial bilateral free trade agreement by the end of this year,” Modi said.
“Your visit to India has added a new vigour, energy and enthusiasm to our partnership. This visit shall act as the catalyst that will translate our ambition into action,” he said, addressing von der Leyen.
India and the EU have long sought to strike a free trade deal, with the next round of negotiations scheduled for March.
Earlier talks have been hampered by disagreements over intellectual property protections, as well as issues involving market access for certain products, including cars and alcoholic beverages.
Last year, India signed a trade agreement with the European Free Trade Association, which comprises Iceland, Liechtenstein, Norway and Switzerland, none of which are EU member states.
Von der Leyen calls for India, EU to ‘reimagine’ partnership
Von der Leyen said that Brussels sought to strengthen its partnership with India amid increasing global competition.
“This world is fraught with danger. But I believe this modern version of great power competition is an opportunity for Europe and India to reimagine their partnership,” von der Leyen said in a speech ahead of her meeting with Modi.
“We both stand to lose from a world of spheres of influence and isolationism. And we both stand to gain from a world of cooperation and working together,” she said.
“This is why the EU and India have the potential to be one of the defining partnerships of this century.” von der Leyen said.
The EU commission chief said that the bloc was considering a potential defense and security partnership with India along the lines of deals struck with Japan and South Korea.
India has not imposed sanctions on Moscow and has called for a negotiated settlement in the war in Ukraine. While the EU is India’s largest trade partner, Russia has been a major source of defense imports for the world’s most populous country.
Von der Leyen said that the EU and India could cooperate in efforts to diversify supply chains, with Brussels looking to “de-risk” its relationship with China.
Edited by: Kieran Burke
