India is set to strengthen its trade ties with the EU, with bilateral trade expected to reach $137.5 billion in 2023-24, nearly a 90% increase over the last decade. EU Commission President Leyen’s visit to India aims to revive the long-stagnant free trade agreement talks, with both leaders aiming to conclude these negotiations this year. The partnership is seen as crucial amid rising geopolitical tensions.
The trade relationship between India and the EU is solidifying, with bilateral trade projected to hit $137.5 billion in the 2023-24 fiscal year, marking a near 90% growth over the past decade. The long-stalled discussions on the India-EU free trade agreement were reignited in 2021, addressing critical issues like investment protection and geographical indications.
Currently, EU Commission President Ursula von der Leyen is on a two-day visit to India alongside leaders from various EU member states. This visit occurs amid heightened geopolitical tensions, prompting both Brussels and New Delhi to explore key areas for improving their strategic partnership.
During a recent business conference, Leyen remarked that challenging times can promote closer collaboration between India and the EU, stating, “Prime Minister Modi and I have agreed to work toward concluding a free trade pact this year.” Her comments highlight the importance of this trade agreement as a potential milestone for both parties.
Leyen also noted the threats posed by a fragmented global landscape defined by influence zones and isolation, explaining, “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 ongoing competition among major powers creates an opportunity for Europe and India to strengthen their ties and rethink mutual cooperation strategies.
In summary, the India-EU trade relationship is on an upward trajectory, with significant growth anticipated. The revival of negotiations for a free trade agreement signals the commitment from both sides to enhance their economic ties. Leyen’s visit underscores the strategic importance of overcoming global challenges through collaboration, emphasizing the mutual benefits available through cooperation.
Original Source: m.economictimes.com
