NEW DELHI (AP) – India and the European Union have agreed to finalize a free trade agreement for a long time and to stimulate cooperation in trade, technology, connectivity and defense, Indian Prime Minister Narendra Modi and the head of the European Commission said on Friday.
Modi said after meeting the president of the European Commission, Ursula von der Leyen, the two parties ordered their teams to conclude the bilateral free trade agreement by the end of this year. Modi said that many decisions had been made to “raise and speed up the Indian-EU partnership” at the meeting.
“The India-UE strategic partnership is natural. His heart is confidence and shared belief in democratic values, “said Modi.
The head of the European Commission said that “the free trade agreement between the EU and India would be the greatest agreement of this type all over the world”.
Brussels increases efforts to seal with an agreement with New Delhi in the face of the potential prices of the United States. US President Donald Trump said he was planning to strike goods made in the EU with 25%prices.
“It is time to be pragmatic and ambitious. And to realign our priorities for today’s realities, “said Von Der Leyen during an address to a reflection group in New Delhi before meeting Modi. “You can count on my full commitment to make sure we can deliver.”
The head of the European Commission is in India during a two -day visit from Thursday and is accompanied by the main leaders of the EU member countries.
India and the EU relaunched discussions on the bilateral agreement in 2021, but problems such as market access for products such as alcoholic cars and drinks have stuck points. The next series of negotiations is expected to take place in March.
India and the EU cooperate closely on issues such as foreign, security and technology policy. The EU is the largest trading partner in India, ahead of the United States and China.
During the year 2023-24, exports and imports to the European block represented more than $ 130 billion, marking an increase of approximately 90% in the last decade. More than 6,000 European companies are also present in India.
Von der Leyen said the EU and India have the potential to be one of the decisive partnerships of this century.
“I want this visit to be the start of this new era. Prime Minister Modi and I share the same point of view. It is time to bring our EU-Indian strategic partnership to the next level, “she said.
For New Delhi, commercial talks have renewed importance after Trump’s decision to impose reciprocal prices on goods imported from countries, including India.
Last year, India signed a trade agreement with Iceland, Liechtenstein, Norway and Switzerland, which include the European Free Trade Association, which includes a commitment of $ 100 billion in investments. Investments should be made in all sectors, including pharmaceuticals, machines and manufacturing.
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