India, E.U. agree to push for conclusion of free trade pact this year

A free trade agreement between the EU and India would be the largest deal of its kind anywhere in the world and both sides are looking at firming it up by this year, European Commission president Ursula von der Leyen said on Friday (February 28, 2025).

In an address at a think-tank, the top leader of the 27-nation bloc also said that the EU is exploring a future security and defence pact with India in line with its partnerships with Japan and South Korea.

Also read | India sets up EFTA desk to promote trade, investment, business facilitation

Ms. Von der Leyen’s comments came ahead of her wide-ranging talks with Prime Minister Narendra Modi.

“This world is fraught with danger. But I believe this modern version of great power competition is an opportunity for Europe and India to reimagine their partnership,” she said.

“In many ways, the EU and India are uniquely placed to respond to this challenge together,” she added.

Ms. Von der Leyen said it is time to take the EU-India strategic partnership to next level.

“This is not a time to place limits on our cooperation. Or to get stuck looking for agreement on every issue of regional or global concern,” she said “It is time to be pragmatic and ambitious. And to realign our priorities for today’s realities,” she said.

The European Commission president said cooperation in trade and technology, security and defence and connectivity and global partnership can take EU-India partnership to next level.

On the free trade agreement, Von der Leyen said she has full commitment for it. “A free trade agreement between the EU 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,” she said.

“This is why we have agreed with Prime Minister Modi to push to get it done during this year. And you can count on my full commitment to make sure we can deliver,” Ms. Von der Leyen said.

On connectivity, the European Commission president said the India-Middle East-Europe corridor can be a modern golden road directly connecting India, Arabian Gulf and Europe.

I believe 2025 is a historic window of opportunity to build an indivisible partnership between Europe and India, she said.

India, E.U. discusses progress of proposed free trade agreement

Meanwhile, India and the European Union discussed the progress of negotiations on the proposed free trade agreement (FTA).

The agreement was discussed during a meeting between Commerce and industry Minister Piyush Goyal and European Commissioner for Trade and Economic Security Maros Sefcovic in New Delhi.

“Had a candid and insightful discussion with EU Trade Commissioner @MarosSefcovic over breakfast today on the India-EU FTA and the progress of the Trade and Technology Council. Exciting times ahead as we work towards elevating our trade and investment ties to the next level as trusted partners,” Mr. Goyal said in a post on X.

Mr. Sefcovic is accompanying European Commission President Ursula von der Leyen, who is here on an official visit with the EU College of Commissioners or senior political leaders of the bloc.

The meeting assumes significance as the senior officials of the two sides are scheduled to hold the tenth round of negotiations for the FTA from March 10-14 in Brussels.

In January this year, Mr. Goyal was in Brussels to meet the European Commissioner for Trade to take stock of the progress of the talks.

Further strengthening of economic ties between the two is crucial in light of the threat from U.S. President Donald Trump to impose higher tariffs.

In the ninth round, India and the E.U. discussed trade issues covering goods, services, investment and government procurement along with necessary rules such as rules of origin, SPS (sanitary and phytosanitary), and technical barriers to trade.