New Delhi: In a pivotal moment for global diplomacy, Indian Prime Minister Narendra Modi and European Commission President Ursula von der Leyen convened in New Delhi on Friday, marking a significant step in bolstering the India-European Union strategic partnership. This high-profile meeting, which took place during von der Leyen’s two-day visit to India, underscored the urgency of strengthening economic ties amidst a rapidly changing geopolitical landscape.
The talks centered on accelerating negotiations for an ambitious free trade agreement, a move expected to significantly enhance bilateral trade and investment. The EU, India’s largest trading partner in goods, has been keen to expand its trade basket with India. In the financial year 2023-24, bilateral trade in goods reached $135 billion, with Indian exports to the EU valued at $76 billion and imports from the EU at $59 billion. Additionally, bilateral trade in services hit a record high of $53 billion in 2023.
Von der Leyen emphasized the unique position of both the EU and India to navigate the challenges of great power competition, stating, “This modern version of great power competition is an opportunity for Europe and India to reimagine their partnership.” The discussions also touched upon critical global issues, including the Russia-Ukraine conflict and developments in the Indo-Pacific region.
The EU’s investments in India are substantial, with over 6,000 European companies operating in the country and investments valued at more than $117 billion. Conversely, Indian investments in the EU stand at approximately $40 billion. The proposed free trade pact is seen as a crucial step in deepening economic engagement between the two entities.
