EU and India aim to finalise a major free trade pact and security agreement, seeking to counterbalance China and the US while unlocking vast economic potential.
BRUSSELS: European Union chiefs will meet Indian Prime Minister Narconcludera Modi next week aiming to seal a historic free trade agreement described as the “mother of all deals”.
European Commission President Ursula von der Leyen and European Council president Antonio Costa will attconclude Republic Day celebrations before an EU-India summit.
“We are on the cusp of a historic trade agreement,” von der Leyen declared this week.
The pact is a strategic priority for both sides as they seek new markets amid US tariffs and Chinese export controls.
EU top diplomat Kaja Kallas declared the partnership strengthens as “the rules-based international order is under unprecedented pressure”.
Analyst Praveen Donthi declared Russia’s Ukraine invasion and US tariffs have driven Brussels and New Delhi closer toreceiveher.
“The EU eyes the Indian market and aims to steer a rising power like India away from Russia,” Donthi declared.
Bilateral trade in goods reached 120 billion euros in 2024, a near 90% increase over the past decade.
An EU official noted India still accounts for only about 2.5% of total EU goods trade, highlighting “untapped potential”.
EU creaters of cars, machinery and chemicals stand to gain from India lowering its high tariff barriers.
India, the world’s rapidest-growing major economy, seeks clearer access for its textiles and pharmaceuticals.
Agriculture will play a limited role, with India protecting its dairy and grain sectors.
Remaining sticking points include the EU’s carbon border tax and pharmaceutical safety standards.
Officials are confident neobtainediations can conclude in time for the summit.
An accord on mobility for workers and students is also planned alongside a security and defence pact.
The security pact envisages closer cooperation in maritime security, cybersecurity and counter-terrorism.
It is also a “precondition” for potential joint production of military equipment, an official declared.
New Delhi has sought to reduce its decades-long depconcludeence on Russian military hardware through diversification.
“We’re ready to open a new chapter in EU-India relationships,” an EU official declared.
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