Indian Prime Minister Narendra Modi said Friday after talks with European Commission President Ursula von der Lain that India and the European Union intend to reach a free trade agreement by the end of this year.
“We asked our teams to work with the aim of concluding a free trade agreement that benefits the two sides by the end of this year,” Modi told reporters, after the negotiations that started in the year 2022.
The two sides express their desire to accelerate the conclusion of the agreement at a time when US President Donald Trump threatens its main commercial partners to increase customs duties.
The European Union is the largest commercial partner of India, and the volume of commodity trade between them reached 124 billion euros in 2023, or more than 12% of the total Indian trade, according to Brussels.
This market provides important opportunities for Europe, but it remains protected by high customs duties, knowing that it currently only represents 2.2% of the commodity trade in the European Union.
The European Union in particular calls to open the Indian market to cars and alcohol, while India wants to facilitate its sale of its products of fabric and medicines. New Delhi from Brussels also wants to issue more visas for its citizens.
Before meeting Moody, von der Lain also expressed her desire to “accelerate” discussions. “I know that it will not be easy, but I also know that timing and design are important and that this partnership comes in time for both parties.”
Von der Line is a two -day visit to India that started yesterday, Thursday, accompanied by prominent leaders from the European Union. Von der Line wrote via the X platform about her meeting with Modi that “the (European Commission) visit to our appreciation for our partnership with India. The extent of my appreciation for our personal friendship.”
“This world is fraught with risks. But I believe that this new version of strong competition for influence is an opportunity for Europe and India to re -imagine their partnership,” said von der Line before meeting with Modi.
She added: “All of us can lose in the shadow of a world of influence and isolationism, and we can win from a world that involves cooperation and work together.”
