India and the European Union have announced plans to conclude a long-pending free trade agreement by the end of this year. The agreement aims to enhance cooperation in trade, technology, connectivity, and defense between the two entities.
During a meeting between Indian Prime Minister and the European Commission chief, both sides expressed their commitment to elevating and accelerating the India-EU partnership. The leaders highlighted the natural strategic partnership based on trust and shared democratic values.
The European Commission chief emphasized that the free trade agreement between the EU and India would be the largest of its kind globally. The move comes as the EU seeks to solidify its trade relations with India amid potential U.S. tariffs on EU goods.
Efforts to finalize the agreement have been ongoing, with negotiations set to resume in March. Market access for products like cars and alcoholic beverages remains a key point of discussion.
India and the EU have a history of collaboration in various areas, including foreign policy, security, and technology. The EU is India's largest trading partner, with trade between the two exceeding $130 billion in the 2023-24 fiscal year.
The European Commission chief expressed optimism about the potential for the EU-India partnership to become a defining relationship of the century. The visit is seen as a step towards taking the strategic partnership to new heights.
For India, the trade talks hold significance following recent tariff impositions by the U.S. Last year, India signed a trade agreement with European Free Trade Association countries, paving the way for substantial investments across industries.
