India and the European Union have set a year -end deadline for a historic free trade agreement, which has been working for a few years. The announcement was made in a joint statement by Prime Minister Narendra Modi and the head of the European Union Ursula von dera Leyen after the two leaders met in New Delhi to further strengthen the relations of the India-European Union.
Apart from the European Union, India is independently interacting with several other countries, including the UK, the world’s fastest growing major economy to establish a free trade treaty is to promote its trade relations. This step is also trying to soften the impact of tariffs imposed by the European Union and most nations globally Donald Trump.
This is not the first time that India and the European Union aim for a free trade agreement. An attempt was made a decade ago, but the conversation stalled in 2013. Another attempt was made in 2021 and since then – both sides were working hard for the best results for themselves.
However, the relations of the India-EU are, however, are beyond business only. Addressing the media at a joint press conference, PM Modi said, “We have prepared a blueprint for cooperation in the areas of business, technology, investment, innovation, green development, security, skilling and dynamics.”
PM Modi further said that the officials, who have negotiated on the terms of the relations of the India-EU relations, have been asked to finalize the deal by the end of the year. He also said that “Today, we have decided to create a bold and ambitious roadmap for the India-EU partnership for a period of 2025. It will be launched during the next India-European Union Summit.”
“We will work together on triangular development projects for sustainable and inclusive development in the Indo-Pacific sector and Africa,” PM Modi highlighted a shared Indo-EU vision for an independent and open Indo-Pacific sector.
Calling the extensive India-European Union deal a very “ambitious”, the head of the European Union, Ursula von Dera Leyen, said that the conversation includes “from green tech to pharmaceuticals, semiconductors to green hydrogen and protection.”
He also called the Indian Ocean “lifeline for global trade” and said that it is “important to ensure its safety, not only for India but for the whole world”. Emphasizing a global security structure, the Chief of the European Commission said, “We should expand our joint naval exercises, construct our very successful operations in the Guinea and the Gulf of the Red Sea.”
challenge
The European Union is already India’s largest trading partner with two-way trade accounting for more than $ 137 billion in 2023–24. In the last decade alone – since 2014 – India -Auropian Union has increased by 90 percent on a large scale.
But every time an attempt has been made for a comprehensive agreement of the India-European Union, it has been obstructed by obstacles. From India, New Delhi is not in favor of reducing tariffs in some industries, while for the European Union, it is not currently ready to reduce visa restrictions to prevent Indian professionals to work in Europe.
While Europe wants to cut tariffs on cars and bikes as well as the imports of whiskey and wine, India wants Europe to provide more access to Indian pharma firms to supply cost-effective drugs and chemicals throughout Europe.
India also wants Europe to reduce import tariffs on textile, clothing, leather products. New Delhi also rejects 20-35 percent carbon tax imposed on industrial goods like cement, steel and aluminum.
India-Europe Corridor
In another important update, PM Modi confirmed that strategically important India-Midil East-Europe Corridor or IMEEC was detailed with European leaders because it is often called.
As the name suggests, the project, already being manufactured, will connect India from the whole of Europe through the sea, rail and road through the Middle East (West Asia). PM Modi said in a joint press conference, “I am confident that the IMEC corridor will prove to be an engine to run global commerce, permanent growth and prosperity.”
The two sides agreed to promote the project to increase connectivity and to save costs by giving it priority.
(Input from Reuters and PTI)
