European Commission President Ursula von der Leyen said Friday during a visit to New Delhi that the European Union and India will work to finalize a free-trade agreement in 2025. Photo by Harish Tyagi/EPA-EFE
Feb. 28 (UPI) — European Commission President Ursula von der Leyen said Friday the European Union and India will work to finalize a free-trade agreement in 2025.
Speaking in New Delhi, von der Leyen said that the potential free trade agreement between the bloc and India “would be the largest deal of this kind anywhere in the world.”
“I am well aware it will not be easy. But I also know that timing and determination counts, and that this partnership comes at the right moment for both of us. This is why we have agreed with Prime Minister Modi to push to get it done during this year,” said von der Leyen.
She said the EU is India’s largest trading partner and European companies create 8 million jobs in India. A free trade agreement, she said, would build on that by improving market access and reducing trade barriers.
Von der Leyen added that in addition to trade the EU is exploring a possible security and defense partnership with India similar to existing agreements with Japan and South Korea.
“This will help us step up our work to counter common threats whether on cross-border terrorism, maritime security threats, cyber-attacks or the new phenomenon we see: attacks on our critical infrastructure,” von der Leyen said.
The EU also seeks to deepen connectivity links and a global partnership with India that includes investments.
“This is in our core economic and national security interest. India can play a unique role as a bridge between the Global South and the rest of the world, Between the Indo-Pacific and Europe,” von der Leyen said. “And Europe is ready to invest to help bring that to life. Through Global Gateway, our EUR 300 billion global infrastructure offer, we can invest in projects to transport energy across India, and between India and the world.”
She pointed to the India-Middle-East-Europe corridor project launched in New Delhi in 2023 as an example of the increased connectivity she said will benefit both partners.
That project includes a rail link, an electricity cable and a clean hydrogen pipeline as well as a high-speed data link.
Von der leyen called the project a “green and digital bridge across continents and civilizations.”
She said Europe is ready to invest in concrete projects with India.
Von der Leyen’s efforts to forge new trade, security, connectivity and investment deals with India and the Indo-Pacific region comes as the Trump administration disrupts traditional ties to Europe with trade conflicts and disagreements over Ukraine.
Roughly 6,000 EU companies are active in India as bilateral trade in 2022-23 hit $135 billion.
India signed a $100 billion free trade deal last year with the European Free Trade Association, a bloc of four non-EU European nations.
The EU and India are planning a summit for later this year.