India is set to strengthen its economic ties with the EU, its largest trading partner, with projected trade reaching $137.5 billion in the 2023-24 fiscal year. EU Commission President Ursula von der Leyen’s visit emphasizes renewed discussions on the free trade agreement, addressing investment protection, and cooperation amid global tensions.
The European Union (EU) has emerged as India’s largest trading partner for goods, with projections estimating that bilateral trade will reach $137.5 billion in the 2023-2024 fiscal year. This growth signifies an impressive nearly 90% increase over the past decade. In 2021, negotiations surrounding the long-stagnated India-EU free trade agreement recommenced, now addressing critical issues such as investment protection and geographical indications.
During her two-day visit to India, EU Commission President Ursula von der Leyen met with leaders from various EU member states. This meeting is strategically timed amid rising geopolitical tensions, allowing for discussions aimed at identifying key areas for enhanced cooperation between Brussels and New Delhi in their strategic partnership.
At a recent business conference, Ms. von der Leyen articulated that challenging global circumstances can foster deeper collaboration between India and the EU. She stated, “Prime Minister Modi and I have agreed to work toward concluding a free trade pact this year.”
Emphasizing the dangers of a fragmented global landscape characterized by isolationism and competing spheres of influence, Ms. von der Leyen noted, “We both stand to lose in such a scenario, but we stand to gain from a framework of cooperation and collaboration.”
She further asserted that the dynamics of global power competition encourage both Europe and India to reevaluate and bolster their partnership, thus highlighting the importance of a united approach in the current geopolitical climate.
The ongoing discussions and agreements between India and the EU signal a commitment to strengthening their economic ties. With a focus on concluding a free trade agreement this year, both parties recognize the potential benefits of collaboration amid global challenges. The time is ripe for both nations to reinforce their partnership and seek mutual growth within a competitive international arena.
Original Source: m.economictimes.com
