After years of negotiations for an India-EU free trade agreement (FTA), PM Narendra Modi and European Commission President Ursula von der Leyen finally set a deadline - end of this year - for a balanced, ambitious and mutually beneficial agreement, in a significant takeaway from the EU leader’s visit.
Von der Leyen said her visit was taking place at a time the seven planets in the solar system had come into perfect alignment. “They say this signals transformation and growth. The planets are aligned, and so are Europe and India,” she said.
Describing India-EU partnership as natural and organic, based on trust and shared democratic values, Modi announced that both leaders had asked their teams to finalise by the year-end what would be, according to von der Leyen, the largest deal of its kind in the world. The leaders asked officials to work as trusted partners to enhance market access and remove trade barriers, according to a joint statement.
India and the EU will hold the 10th round of FTA negotiations in March since the talks were relaunched in 2021. Agreeing that meeting the deadline won’t be easy, von der Leyen said timing and determination mattered. EU officials reiterated after the meeting that they would continue to seek concessions from India on lower tariffs on wines and cars, without which the agreement won’t be possible, but said commitment at the political level was important.
Modi said that to strengthen the investment framework, the leaders discussed progress on the ongoing discussions for an Investment Protection and GI (Geographical Indications) Agreement this year. They agreed to take concrete steps to carry forward the India - Middle East-Europe Economic Corridor initiative, with Modi saying it would drive global commerce, sustainable growth and prosperity in the future. While there was talk about enhancing cooperation in AI, semiconductors and space, both leaders also focused on peace and security in the Indo-Pacific, agreeing to work for inclusive development in third countries in the region. In a joint statement, they reaffirmed their commitment to promote a free, open, peaceful and prosperous Indo-Pacific built on international law and mutual respect for sovereignty. Modi welcomed the EU joining the Indo-Pacific Oceans Initiative (IPOI).
