On February 28, 2025, Indian Prime Minister Narendra Modi announced that India and the European Union (EU) are expected to finalize a free trade agreement by the end of the year. This declaration was made during a visit from European Commission President Ursula von der Leyen, aimed at enhancing economic relations between the two entities.
- India and EU to finalize trade agreement soon.
- Modi emphasizes a mutually beneficial deal.
- EU seeks stronger partnership amid global competition.
- Previous talks stalled over intellectual property issues.
- Potential defense partnership discussed by von der Leyen.
- Cooperation on supply chain diversification proposed.
The pursuit of a free trade agreement between India and the EU has been ongoing, with both parties seeking to create a mutually beneficial arrangement. Modi emphasized the importance of this agreement, stating that it would foster a stronger partnership. The next round of negotiations is scheduled for March, indicating a commitment to progress in discussions.
Key points regarding the trade agreement include:
- The agreement aims to enhance economic cooperation and address tariffs.
- Previous negotiations faced challenges over intellectual property and market access.
- India recently signed a trade agreement with the European Free Trade Association, which includes non-EU countries.
During her visit, von der Leyen highlighted the need for India and the EU to strengthen their partnership amidst global competition. She noted that cooperation could lead to mutual benefits, contrasting the risks of isolationism. The EU is also exploring a potential defense and security partnership with India, similar to agreements with Japan and South Korea. This reflects a broader strategy to diversify supply chains and reduce dependence on China.
In summary, the anticipated free trade agreement between India and the EU represents a significant step towards enhancing economic ties. With negotiations resuming in March, both parties aim to address previous hurdles and solidify their partnership in a rapidly changing global landscape.
