India and the EU Have Plenty to Gain by Forging Closer Relations

Ursula von der Leyen's visit to India has brought the two sides closer as they aim to boost trade and supply-chain resilience

- JYOTI VIJ

The success of European Commission (EC) President Ursula von der Leyen's visit to India must not be measured merely in terms of the progress made on free trade agreement (FTA) negotiations. The new ground covered by our bilateral ties should also be considered.

To be sure, progress on India's FTA with the European Union has not been insubstantial. Both sides have committed themselves to signing it by the end of this calendar year. When it happens, it will be the world's largest deal of its kind. A trade pact between both sides will not just strengthen our trade and investment links, but also help foster innovation, sustainability and resilient supply chains.

Equally important is this visit's message across the world: India is willing to promote international trade and negotiate tariffs without sacrificing its economic interests. Coupled with its commitment to negotiate the first tranche of a mutually beneficial multi-sector bilateral trade agreement (BTA) with the US by the autumn of 2025, the proposed FTA with the EU dispels many misgivings about India's supposed protectionism.

This is why, in his opening address at the plenary session with the EC President on 28 February, Prime Minister Narendra Modi identified trade and investment as the first priority area of cooperation with the EU. In the last fiscal year, the EU was India's largest trading partner, with bilateral trade reaching $137.5 billion.