New Delhi: India and Europe have concluded the “mother of all” trade deals, European Commission President Ursula von der Leyen said Tuesday as Prime Minister Narendra Modi and the top EU leadership held summit talks to elevate the two-way ties to jointly navigate geopolitical turbulence and trade disruptions.
Prime Minister Modi hosted von der Leyen and European Council President Antonio Costa at the summit.
“Europe and India are making history today. We have concluded the mother of all deals. We have created a free trade zone of two billion people, with both sides set to benefit,” Von der Leyen said.
“This is only the beginning. We will grow our strategic relationship to be even stronger,” she said.
The two EU leaders graced the 77th Republic Day celebrations at the Kartavya Path as chief guests on Monday.
The long-awaited free trade agreement is expected to significantly expand the overall trajectory of two-way engagement as it will open up new opportunities for cooperation in diverse areas.
Following the summit, the two sides are set to ink a document to formally announce the conclusion of the FTA negotiations. It may take at least six months to formally sign the deal as it will require legal scrubbing by both the sides.
The EU and India had first launched negotiations for the free trade agreement in 2007, before the talks were suspended in 2013 due to a gap in ambition.
The negotiations were relaunched in June 2022.
The EU, as a bloc, is India’s largest trading partner in goods. For the financial year 2024-25, India’s total trade in goods with the EU was worth about USD 136 billion, with exports around USD 76 billion and imports at USD 60 billion.
The broad focus of the summit was learnt to be on trade, defence and security, climate change, critical technologies and strengthening the rules-based global order. Besides firming up the free trade agreement, the two sides are set to unveil a defence framework pact and a strategic agenda.
India and the European Union have been strategic partners since 2004. The proposed Security and Defence Partnership (SDP) will facilitate deeper defence and security cooperation between the two sides, officials said.
The SDP will bring interoperability in the defence domain and will open up avenues for Indian firms to participate in the EU’s SAFE (Security Action for Europe) programme.
The SAFE is the EU’s Euro 150 billion financial instrument designed to provide financial support to member states to speed up defence readiness.
At the summit, India and the EU are also set to launch the negotiations for a Security of Information Agreement (SOIA).
The SOIA is expected to boost industrial defence cooperation between the two sides. The two sides are also set to ink an agreement on facilitating the mobility of Indian workers to Europe. It will provide a framework for advancing mobility initiatives by EU member states with India, the officials said.
France, Germany and Italy are among the European nations that have migration and mobility partnerships with India.
The two sides are also expected to ink a number of agreements to provide for deeper cooperation in a range of other sectors. They are also likely to deliberate on the pressing global challenges, including the Russia-Ukraine war.
PTI
