Indian Prime Minister Narendra Modi and European Commission President Ursula von der Leyen have agreed to fast-track negotiations for a free trade agreement (FTA) between India and the European Union. They aim to finalize the deal by the end of this year, von der Leyen announced on Friday.

Strong Trade Partnership

The EU is India’s largest trading partner. In the 2023-24 fiscal year, bilateral trade reached $137.5 billion, a 90% jump over the past decade. Negotiations for an India-EU FTA had stalled for eight years but resumed in 2021. The talks now cover investment protection and geographical indications to ensure fair trade practices.

High-Level Visit Amid Global Tensions

Von der Leyen arrived in India on Thursday for a two-day visit. She is accompanied by EU member nation leaders. This visit comes at a time of rising geopolitical tensions. Both sides seek to strengthen their strategic partnership and expand cooperation in key areas.

Commitment to Cooperation

Speaking at a business conference, von der Leyen stressed the importance of collaboration. "Troubled times offer great opportunities for partnership between India and the EU," she said. She confirmed that Modi and she agreed to push for the FTA’s completion this year.

A Shared Vision for the Future

Von der Leyen warned against economic isolationism. "We both stand to lose from a world of spheres of influence and isolationism, and we both stand to gain from a world of cooperation and working together," she said before her talks with Modi.

She also highlighted the changing global power landscape. "But I believe this modern version of great power competition is also an opportunity for Europe and India to reimagine its partnership," she added.

Looking Ahead

India and the EU are committed to strengthening their economic ties. If finalized, the trade agreement will boost investment, create jobs, and enhance cooperation between the two regions.