In a visit signifying deepening ties between Europe and India, European Commission President Ursula von der Leyen landed in the national capital on Saturday. She was welcomed by the Minister of State for Commerce and Industry, Jitin Prasada. von der Leyen and European Council President Antonio Luis Santos da Costa are expected to be the chief guests at the 77th Republic Day celebrations in New Delhi on Monday. This is seen as a prelude to the India-EU summit and the potential signing of a historic trade deal.
In a recent speech at the World Economic Forum in Davos, von der Leyen said the European Union was close to striking a transformative trade pact with India. India’s Commerce Minister Piyush Goyal has touted the proposed free trade agreement as a foundational agreement, potentially paving the way for expanded market access. This comes at a time when global trade is facing challenges, including from US tariffs and Chinese trade restrictions. Foreign Minister S Jaishankar underlined the need for enhanced collaboration with the EU, aimed at stabilizing the global economy in light of the unpredictable policies of the United States. He called for stronger engagement to strengthen supply chains, provide international public goods and strengthen trade and security cooperation.
India and the European Union, grappling with US President Donald Trump’s approach to trade, have moved closer together. Tariffs of up to 50 percent on some Indian exports to the United States and the EU’s dissatisfaction with a pending trade deal with Washington illustrate the need for new alliances. Kaja Kallas, EU foreign policy chief, highlighted India’s crucial role in the European economic and strategic landscape. The EU has also laid the foundations for a strengthened security and defense partnership with India. Together, India and the EU account for around a quarter of the world’s population and GDP. Bilateral trade in goods jumped to 120 billion euros in 2024, a jump of almost 90% over a decade, while trade in services added another 60 billion euros.
(With input from agencies.)
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