New Delhi, Feb 28 India and the European Union have agreed to go ahead with a free trade agreement this year, which will be "the largest deal of this kind" in the world, European Commission President Ursula Von Der Leyen said on Friday.
"A free trade agreement between the EU and India would be the largest deal of this kind anywhere in the world. I am well aware it will not be easy. But I also know that timing and determination count and that this partnership comes at the right moment for both of us," Ursula Von Der Leyen, who is on a two-day visit to India, said.
"This is why we have agreed with Prime Minister Modi to push to get it done during this year. And you can count on my full commitment to make sure we can deliver," she said.
In an oblique reference to US President Donald Trump’s high-tariff policy, Ursula Von Der Leyen said the 27-nation bloc, as well as India, are facing "geopolitical and geoeconomic headwinds" and "a more aggressive posture from major powers".
"The EU and India have potential to be one of the defining partnerships of the century. Our partnership will be around trade and technology, security and defence, and connectivity. Batteries, pharma, chips, clean hydrogen will be among areas of focus," she said.
The announcement comes in the wake of the geopolitical and geoeconomic churn that is taking place with Trump embarking on an ‘America First’ policy that has added to global uncertainties. The trade war that Trump has triggered has cast a shadow on the revival of the world economy. Pressure has also mounted on European countries to divert more resources to prop up defence, which could hit the production of other goods and spending on social welfare.
The EU is also exploring a future security and defence partnership with India, modelled on the lines of agreements that have been signed with Japan and South Korea.
Commerce and Industry Minister Piyush Goyal held discussions with his European Union counterpart on Friday morning.
“Had a candid and insightful discussion with EU Trade Commissioner Macros Sefcovic over breakfast today on the India-EU FTA and the progress of the Trade and Technology Council. Exciting times are ahead as we work towards elevating our trade & investment ties to the next level as trusted partners,” the Indian Minister posted on X.
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