Ursula Von Der Leyen: EU-India Free Trade Agreement to be the Largest Globally
Click to start listening
Synopsis
India and the European Union are set to establish a free trade agreement this year, which European Commission President Ursula Von Der Leyen claims will be the largest of its kind globally. This agreement signifies a strategic partnership amid geopolitical challenges.
Key Takeaways
- The EU and India are on track to finalize a significant free trade agreement this year.
- This deal is projected to be the largest of its kind worldwide.
- Geopolitical tensions are influencing trade dynamics.
- Focus areas for collaboration include technology and defense.
- India and EU aim to strengthen their economic ties.
New Delhi, Feb 28 (NationPress) India and the European Union have decided to proceed with a free trade agreement this year, which will be the largest deal of this nature in the world, stated European Commission President Ursula Von Der Leyen on Friday.
"A free trade agreement between the EU and India will stand out as the largest deal of its kind globally. I recognize that this will not be a simple task. However, I believe that both timing and determination are crucial, and this partnership is timely for both parties," said Ursula Von Der Leyen, who is visiting India for two days.
"This is why we have collaborated with Prime Minister Modi to expedite the process so that it can be accomplished within this year. You can rely on my unwavering commitment to ensure we achieve this," she added.
In a subtle nod to US President Donald Trump’s high-tariff approach, Ursula Von Der Leyen remarked that the 27-member bloc and India are encountering geopolitical and geoeconomic challenges and a more assertive stance from major powers.
"The EU and India hold the potential to evolve into one of the defining partnerships of this century. Our collaboration will encompass trade and technology, security and defense, as well as connectivity. Focus areas will include batteries, pharmaceuticals, semiconductors, and clean hydrogen," she indicated.
This announcement arises amid the geopolitical and geoeconomic shifts prompted by Trump's ‘America First’ policy, which has contributed to global uncertainties. The trade conflict initiated by Trump has overshadowed the recovery of the global economy. Additionally, there is increasing pressure on European nations to allocate more resources toward bolstering defense, potentially impacting the production of various goods and social welfare expenditures.
The EU is also investigating a future security and defense partnership with India, similar to agreements established with Japan and South Korea.
Commerce and Industry Minister Piyush Goyal engaged in discussions with his EU counterpart on Friday morning.
“Had a frank and insightful discussion with EU Trade Commissioner Macros Sefcovic over breakfast today regarding the India-EU FTA and the progress of the Trade and Technology Council. Exciting developments are on the horizon as we strive to enhance our trade and investment relations as trusted partners,” the Indian Minister shared on X.
