(Image source from: Economictimes.indiatimes.com)
The European Union is on the verge of completing a free trade deal with India that could connect nearly two billion individuals and make up nearly 25% of the world's economy, stated European Commission President Ursula von der Leyen. She called this a potentially significant moment for economic relations between the EU and India. Speaking at the World Economic Forum in Davos, Ursula von der Leyen mentioned that while a few steps are still needed, discussions are almost finished. “There is still work to do. However, we are about to finalize a groundbreaking trade deal. Some refer to it as the ultimate agreement," she remarked, during part of her address focusing on broadening and varying Europe’s trade relationships. Linking this trade initiative to future diplomatic actions, Ursula von der Leyen announced her plans to visit India next weekend after the Davos meeting ends, part of efforts to move the agreement forward and strengthen economic ties between Europe and India.
Placing the suggested agreement within the EU's larger global approach, she stated that Europe is dedicated to collaborating with international partners. “Europe will always select the world, and the world is eager to choose Europe," she noted, adding that the EU aims to create a consistent and well-managed setting that encourages investment, enhances trade, and supports sustainable development. Ursula Von der Leyen also pointed out that energy is a key component of Europe’s growth plan, mentioning that the EU seeks to establish an energy union that provides dependable, locally sourced, and affordable energy. She emphasized the importance of having what she called an “urgency mindset" to solve energy issues and ensure long-term economic stability. Beyond trade and energy, she observed a notable rise in defense spending, saying Europe has made more progress this past year than in many earlier decades. She indicated that member nations have increased their defense budgets to unprecedented levels, and three startups in European defense technology have now reached a valuation of over a billion dollars, highlighting the growing creativity in the industry.
As India and EU relations grow, Antonio Luis Santos da Costa, President of the European Council, and Ursula von der Leyen will be the chief guests at India's 77th Republic Day celebrations at Kartavya Path on January 26. At the invitation of Narendra Modi, they will embark on a three-day official visit to India starting January 25. During this visit, they will co-chair the 16th India-EU Summit on January 27 and are set to meet President Droupadi Murmu, along with engaging in both private and group discussions with Prime Minister Modi. An India-EU Business Forum is also anticipated to take place alongside the summit.
India’s Ministry of External Affairs stated that India and the European Union have been strategic partners since 2004, pointing out that their bilateral interactions have significantly grown, especially after the EU College of Commissioners visited India in February of the previous year. The ministry added that the presence of EU leaders at the Republic Day celebrations and the summit is expected to further strengthen the India-EU Strategic Partnership and enhance collaboration in key areas of shared interest.
