India and EU Aim to Conclude Free Trade Agreement by Year-End
India is on track to finalize a free trade agreement with the EU by the end of the year. Prime Minister Modi and EU chief Ursula von der Leyen discussed enhancing trade relations and addressing shared security concerns. The EU seeks greater access to India’s market while India aims for increased investments and job creation. This visit highlights the strategic importance of their bilateral partnership.
India is set to finalize a mutually advantageous free trade agreement (FTA) with the European Union (EU) by the end of this year, according to Prime Minister Narendra Modi following a meeting with EU chief Ursula von der Leyen in New Delhi. The EU delegation aims to strengthen ties and gain deeper access to India’s burgeoning market during their two-day visit.
Trade between India and the EU has reached 124 billion euros ($130 billion) in 2023, making it the largest trading partner for India, accounting for over 12% of India’s total trade. The EU is particularly interested in gaining entry for its automotive, beverage, and agricultural products while India seeks enhanced investments in clean energy and infrastructure.
Von der Leyen emphasized the need to accelerate negotiations and indicated high expectations from trade negotiators, stating that they were encouraged to surprise the EU with their progress. She also pointed to the importance of reducing barriers to ensure favorable conditions for EU exports to India.
The discussions encompassed not only trade but also the potential for a Security and Defence Partnership akin to those established with Japan and South Korea. The partnership would address mutual concerns, including countering terrorism, maritime security, and cyber threats.
India aspires to attract businesses that wish to exit China, providing them with incentives such as tax breaks and streamlined investment regulations. In the face of its large workforce, Modi’s government faces the challenge of generating employment opportunities, making international collaborations essential.
The recent meeting also touched upon regional stability and security in the Asia-Pacific, with shared concerns regarding China’s influence. Additionally, they considered the implications of Russia’s war in Ukraine, though the results of that dialogue were not specified in the follow-up statements.
In summary, this unprecedented visit marks significant strides towards a comprehensive bilateral relationship focused on trade, technology, and defense collaboration. Modi expressed optimism regarding the framework established during these discussions, indicating a roadmap for achieving sustainable economic growth and partnership with the EU.
In conclusion, India and the EU are poised to strengthen their economic relationship through a forthcoming free trade agreement by year-end. The partnership aims to bolster trade, enhance market access, and foster cooperation in security and defense matters. Given the strategic importance of both regions, their collaborative efforts may pave the way for mutual growth and stability in an increasingly complex geo-political landscape.
Original Source: www.rfi.fr
