Strengthening India-EU Trade Relations: A New Chapter in Cooperation

The EU is India’s largest trading partner, with trade expected to reach $137.5 billion this fiscal year, marking significant growth. Ursula von der Leyen’s visit aims to boost cooperation, focusing on finalizing a free trade pact. She emphasizes the risks of a fragmented world while promoting collaboration between India and Europe.

The European Union (EU) remains India’s largest trading partner, with bilateral trade projected to reach $137.5 billion in the fiscal year 2023-24, signifying an exceptional growth of nearly 90% over the past decade. The longstanding negotiations concerning the India-EU free trade agreement, which had stalled for eight years, were revitalized in 2021 to address critical subjects such as investment protection and geographical indications.

Ursula von der Leyen, President of the European Commission, is presently visiting India for two days, which commenced on Thursday. Accompanied by various European Union member state leaders, her visit is timely amidst escalating geopolitical tensions, creating an opportunity for both nations to delineate key areas for reinforcing their strategic partnership.

During a business conference, Ms. von der Leyen articulated that despite challenging circumstances, there exists potential for enhanced collaboration between India and the EU. She stated, “Prime Minister Modi and I have agreed to work toward concluding a free trade pact this year.” This determination reflects the ongoing commitment to fostering bilateral relations through trade.

Leyen also addressed the risks associated with a divided world characterized by isolationism, remarking, “We both stand to lose in such a scenario, but we stand to gain from a framework of cooperation and collaboration.” She emphasized that the current geopolitical climate provides an opportunity for both Europe and India to reassess and reinforce their partnership, aiming for a more cooperative and productive relationship.

In summary, the EU is poised to enhance its trade relationship with India significantly, with anticipated bilateral trade reaching $137.5 billion. The revival of the India-EU free trade agreement negotiations and Leyen’s visit signify a pivotal moment for both parties to strengthen their strategic partnership in the face of global challenges. Cooperation and collaboration are essential in addressing risks associated with a fragmented world.

Original Source: m.economictimes.com