India plans to finalize a free trade agreement with the EU by the end of this year. Prime Minister Narendra Modi and EU President Ursula von der Leyen emphasize mutual benefits and deeper trade ties. The agreement aims to reduce trade barriers and enhance investments in key sectors. Additionally, they will explore defense partnerships amid shared regional security concerns.
India is set to finalize a mutually beneficial free trade agreement (FTA) with the European Union (EU) by the year’s end, as stated by Prime Minister Narendra Modi following a meeting with EU President Ursula von der Leyen. During her two-day visit to India, von der Leyen emphasized the importance of deepening trade ties amidst shifting global relations, particularly with the United States.
The EU is currently India’s largest trading partner, with trade in goods amounting to 124 billion euros ($130 billion) in 2023. Despite the significant economic ties, the EU comprises only 2.2 percent of India’s total trade in goods due to high tariffs. Both parties are keen to enhance their economic collaboration in sectors such as defense, agriculture, and clean energy.
In her statements, von der Leyen noted, “We have tasked our teams to build on this momentum and finalize our FTA before the end of the year.” The EU aims to lower barriers for its products, including cars, wines, and spirits, while India seeks greater investments from the EU in areas such as clean energy and urban infrastructure.
Additionally, the visit aims to address shared concerns over China’s influence in the Asia-Pacific region. Von der Leyen expressed interest in establishing a future Security and Defense Partnership akin to existing agreements with Japan and South Korea, focusing on collective responses to common threats.
Amid discussions on various matters, including defense cooperation and the geopolitical landscape, Modi highlighted the significance of their shared perspectives on regional stability. “This visit is unprecedented… and we have taken many important decisions on trade, technology, innovation, green growth, security, skilling, and mobility — a blueprint (for future) has been prepared,” he concluded after the meeting.
In summary, India and the European Union are poised to conclude a pivotal free trade agreement by the end of this year, strengthening economic ties and collaborative efforts on security and defense. This partnership aims to address mutual concerns regarding China’s influence while enhancing trade opportunities across critical sectors. The outcomes of this engagement could significantly impact both economies and foster greater regional stability.
Original Source: www.rfi.fr
