India is set to conclude a free trade agreement with the EU by year-end, as Prime Minister Narendra Modi announced after talks with EU leader Ursula von der Leyen. The agreement aims to reduce trade barriers and increase investments, particularly in clean energy and infrastructure. The collaboration also addresses shared security concerns amid geopolitical challenges.
India is poised to finalize a significant free trade agreement (FTA) with the European Union (EU) by the conclusion of this year, as announced by Prime Minister Narendra Modi following his discussions with EU Commission President Ursula von der Leyen in New Delhi. Given that the EU is India’s largest trading partner, there is a strong motivation to enhance bilateral trade through this agreement, focusing on reducing trade barriers and expanding market access.
Prime Minister Modi emphasized the goal of establishing a mutually beneficial bilateral free trade agreement and mentioned that both teams have been instructed to expedite the process. Von der Leyen’s visit aims to explore opportunities in the rapidly growing Indian market, which, despite high tariffs, presents vast potential in various sectors, including defense, agriculture, and clean energy.
The EU’s current trade with India amounts to 124 billion euros, constituting over 12 percent of India’s total trade. However, the EU only accounts for 2.2 percent of trade in goods entering India. The desired trade agreement will seek to lower import barriers for EU goods while India expects increased investments in areas such as clean energy and urban infrastructure.
Moreover, the discussion also revolved around fostering stronger security ties between the EU and India amidst rising concerns regarding China’s influence in the Asia-Pacific region. Von der Leyen announced that both parties are investigating a future Security and Defence Partnership, similar to those established with Japan and South Korea.
Efforts will also be directed towards strengthening supply chains and attracting businesses seeking to relocate from China, supported by incentives such as tax breaks and streamlined investment regulations. Modi’s administration is focused on creating job opportunities in order to address the challenges posed by India’s expanding population.
Topics such as the ongoing conflict in Ukraine were anticipated during the meetings; however, Von der Leyen’s statements did not directly address this aspect. Ultimately, both sides aim to foster collaboration on defense exchanges, naval exercises, and the localization of military production in India. The historic nature of this visit has led to substantial discussions regarding trade, technology, security, and mutual cooperation for future growth.
In summary, India and the European Union are making significant strides toward finalizing a comprehensive free trade agreement that promises mutual benefits and increased market access. Both parties are eager to bolster their trade relations amid changing global dynamics, focusing not only on economic collaboration but also on security and defense partnerships. This visit signifies a pivotal moment in India-EU relations, paving the way for enhanced cooperation in various strategic areas.
Original Source: www.rfi.fr
