NEW DELHI: Amid the changing dimensions of US-Europe ties, India is looking to strengthen its trade and investment partnership with the European Union (EU) while emphasing on development of bilateral technologies and defense cooperation.
The top brass of India and the EU are expected to provide a fresh push on Friday toward finalising an ambitious trade deal in consideration for the past 17 years as the 27-nation bloc aims to revitalise its economic ties with India amidst growing tariff-related friction with the US, while managing the differences over certain contentious global issues.
European Commission President Ursula von der Leyen, accompanied by the EU College of Commissioners – most of them senior political leaders of the European bloc – began a high-profile two-day visit to India on Thursday afternoon.
“In an era of conflicts and intense competition, you need trusted friends. For Europe, India is such a friend and a strategic ally,” Von der Leyen posted on X soon after she was received at the airport by Union minister Anupriya Patel.
“We are seeing this visit as very important and this will certainly take our relationship to the next level in a very substantive way,” said a senior official in the Ministry of External Affairs, concurring with Von der Leyen statement that she will “discuss with Prime Minister Narendra Modi how to take our strategic partnership to the next level.”
The EU is India’s largest trading partner in goods, with bilateral trade amounting to $137.5 billion in the 2023-24 fiscal year, reflecting a growth of approximately 90% over the past decade.
India is keen on expanding ties into emerging technologies including artificial intelligence and partnering with the EU in building resilient supply chains. “EU is an important partner. We are interested in their technology and we offer them scale. We are also finding salience in many of their security construct,” the senior MEA official said.
Though both sides resumed the talks for a Free Trade Area (FTA), EU wants India to cut import duties on cars, wines and agriculture products. But India contends that World Trade Organization rules permit differential tariffs between developed and developing nations, but has expressed willingness to gradually reduce tariffs in consultation with domestic industries.
The talks between Modi and Von der Leyen on Friday are set against the backdrop of rising tensions between the EU and the Trump administration. In a pointed statement, the US President on Wednesday accused the EU of being formed to “screw” with the US, while also threatening to impose 25% tariffs on imports from the EU.
The two sides are also expected to deliberate on the Russia-Ukraine conflict, as issue on which they contentious views.