India and the European Union (EU) are aiming to finalize a comprehensive trade agreement this year, European Commission President Ursula von der Leyen announced on Friday, Bloomberg reports.
“A free trade agreement between the EU and India would be the largest deal of this kind anywhere in the world,” von der Leyen said at an event in New Delhi. “You can count on my full commitment to make sure we can deliver,” she added, stating that she and Indian Prime Minister Narendra Modi have agreed to “push to get it done during this year.”
Negotiations for a free trade pact between the two sides have been ongoing since 2007 but were suspended in 2013 due to disagreements on issues such as lower tariffs for European automobiles, wine, and dairy products. Talks resumed in 2022, and the 10th round of negotiations is scheduled to take place next month in Brussels.
“We can offer each other distinctive alternatives and tools to make ourselves stronger, more secure and more sovereign in today’s world. The kind of offer that cannot really be replicated by others, “von der Leyen said.
Modi’s meeting with the European Commission President occurs amidst rising global economic uncertainty, particularly in light of US President Donald Trump’s threats to increase tariffs on both rivals and allies.
The EU trade bloc is currently India’s largest trading partner, with total trade reaching $137.4 billion in fiscal year 2023-24, according to India’s commerce ministry.
