India and the European Union (EU) are taking significant steps to strengthen their relationship in an era of shifting global alliances. High-level meetings have highlighted the importance of trade discussions as both parties aim to finalize a free trade agreement (FTA) by 2025. The ongoing negotiations focus on various contentious issues, including tariffs, market access, and regulatory standards, which have long posed challenges to a comprehensive trading framework. European Commission President Ursula von der Leyen’s landmark visit to India, in which she emphasized the need for collaboration on technology, climate change, and security, adds momentum to these efforts. Von der Leyen stated, ‘India is a key partner for Europe. We want to intensify our cooperation.’ The EU seeks to diversify its supply chains and reduce reliance on China, aligning with India’s ambitions to bolster its economic presence globally. As talks progress, both sides remain optimistic about overcoming existing hurdles, with further discussions anticipated in the lead-up to the anticipated FTA agreement. The EU and India represent significant market opportunities, as the EU is India’s largest trading partner, accounting for approximately 11% of its total trade. Conversely, India ranks as the EU’s ninth-largest trading partner, with trade in goods and services valued at around €70 billion annually.
India and EU Strengthen Ties Amidst Global Alliances Shift
