Strengthening India-EU Relations: Trade Pact on the Horizon

The EU is India’s largest trading partner, with trade projected at $137.5 billion for 2023-24, showing a 90% increase over ten years. President von der Leyen’s visit aims to enhance cooperation amid geopolitical tensions and discusses concluding a free trade agreement this year.

The European Union (EU) has emerged as India’s most significant trading partner, with bilateral trade expected to reach $137.5 billion during the 2023-24 fiscal year. This marks an extraordinary growth of nearly 90% over the past decade. In 2021, discussions to revive the long-stalled India-EU free trade agreement commenced, addressing key issues such as investment protection and geographical indications.

Currently, European Commission President Ursula von der Leyen is in India for a two-day visit, which started on Thursday. Accompanied by leaders from various EU member states, this visit occurs amid heightened geopolitical tensions, presenting an opportunity for Brussels and New Delhi to explore vital areas of enhanced cooperation.

During a business conference, President von der Leyen articulated the importance of collaboration during difficult times. She stated, “Prime Minister Modi and I have agreed to work toward concluding a free trade pact this year.”

Moreover, Leyen addressed the mutual threats posed by a fragmented world characterized by isolationism, remarking, “We both stand to lose in such a scenario, but we stand to gain from a framework of cooperation and collaboration.” She added that the current global dynamics offer both Europe and India a chance to reconsider and fortify their partnership.

In summary, the revival of the India-EU trade agreement discussions signifies a pivotal moment for both parties, with substantial growth in bilateral trade expected. President von der Leyen’s visit underscores the urgent need for cooperation amidst global challenges, and the affirmation by leaders to finalize the free trade agreement indicates a commitment to strengthening ties between India and the EU.

Original Source: m.economictimes.com