New Delhi, India – European Commission President Ursula von der Leyen announced ambitious plans for a free trade agreement between the European Union and India, aiming to solidify their economic collaboration. During her visit to India, von der Leyen emphasized the significance of the potential agreement, stating that it would be the largest deal of its kind globally.

Accompanied by the College of Commissioners, von der Leyen’s visit marked the first official trip to India post the European parliamentary elections in June 2024. In discussions with Indian Prime Minister Narendra Modi, both sides expressed their desire to expand trade and investment partnerships in various sectors such as semiconductors, artificial intelligence, and cleantech.

The EU and India recently reignited talks on a long-standing free trade agreement, with upcoming negotiations scheduled for March. Additionally, plans for an India-EU summit later in the year indicate a mutual commitment to strengthen their ties across trade, security, and defense.

Amid growing tensions between the US and Europe over trade disputes and geopolitical issues, the EU is turning towards expanding its engagements in the Indo-Pacific region. In response to US threats of imposing tariffs on European goods, the EU has vowed to retaliate promptly against any unjustified measures.

Although challenges persist in reaching a comprehensive trade deal between India and the EU, both parties have made strides in enhancing bilateral trade relations. With over 6,000 EU companies operating in India and trade amounting to $135 billion in goods in 2022-23, the economic ties between the two entities continue to strengthen.

As India embraces a more proactive stance in pursuing free trade agreements with various nations, including the recent engagement with the UK, the country’s commitment to fostering global trade partnerships is evident. Furthermore, India’s successful negotiation of a $100 billion free trade agreement with the European Free Trade Association underscores its growing influence in international trade negotiations.

In conclusion, the prospects of a free trade agreement between the EU and India offer a glimpse into the future of their economic collaboration, as both sides navigate complex trade dynamics and geopolitical challenges to foster mutually beneficial partnerships.