In a joint statement in the Indian capital, the President of the European Commission, Ursula von der Leyen, and the prime minister of India, Narendra Modi, announced their commitment to finalize a bilateral free trade agreement before the end of the year. This pact, which would be the largest of its kind worldwide, seeks to strengthen cooperation in key areas such as trade, technology, connectivity and defense.
Von der Leyen stressed the importance of this agreement in the current geopolitical context and the potential it represents for both parties. "It's time to be pragmatic and ambitious. And to realign our priorities with current realities.", said the President of the European Commission. She also stressed that «An EU-India free trade deal would be the largest of its kind anywhere in the world«, reflecting the magnitude of the project that both regions have decided to promote.
Prime Minister Modi, for his part, highlighted the strength of the relationship between India and the European Union: "The strategic partnership between India and the EU is a natural one. At its core is trust and a shared belief in democratic values."Both leaders have instructed their teams to speed up negotiations and achieve the signing of the agreement before the end of 2025.
A new chapter in the strategic relationship
During his speech in New Delhi, Von der Leyen stressed that the world is in a «turning point« and that both India and the EU should seize the opportunity to strengthen their cooperation in an uncertain global context. "Today's world is fragile, fractured, and on the verge of changes that will define the coming decades.", Assured.
The President also referred to India's development vision and how the EU can contribute to this process: "India is on track to become one of the four largest economies in the world. Its initiative..."Viksit Bharat 2047'It will transform the economy and create millions of jobs, from traditional manufacturing to high technology and innovation. Europe is seeking the same in its own industrial and economic transformation. Together we can achieve it.'He said.
In this regard, Von der Leyen stressed that the strategies Make in India y Made in Europe can complement each other to boost industry and innovation. He also mentioned specific sectors where collaboration can be key, such as semiconductor production, batteries, green hydrogen and the pharmaceutical industry.
"Today, the EU is India's largest trading partner, ahead of USA and ChinaEuropean companies create more than 8 million jobs in India. However, we can do much more by improving market access and removing trade barriers., He said.
A new axis in security and defense
Beyond trade, the President of the European Commission also announced that the EU is exploring a future security and defence partnership with India, similar to those already established with Japan and South Korea. "We want to intensify our cooperation in the fight against terrorism, maritime security, cybersecurity, and the protection of critical infrastructure. India is diversifying its military supply and seeking new capabilities. We can help each other achieve our security objectives.", said von der Leyen.
Defence cooperation has already shown recent progress with joint projects in maritime security, and the EU is open to India participating in defence programmes. Permanent Structured Cooperation (PESCO), a European initiative in the field of defence.
"What happens in one part of the world affects the other, even if we are geographically separated.", the president added. "Because in this interconnected world, peace, security, and prosperity are indivisible.".
Global Connectivity: The Role of India and the EU in the Global South
Von der Leyen also highlighted India's key role as a bridge between the Global South and the rest of the world, as well as between the Indo-Pacific and Europe. In this sense, he valued the India-Middle East-Europe Corridor, announced during India's G20 presidency in 2023.
"This is a historic project. It's not just a railway line or a data cable; it's a green, digital bridge between continents and civilizations.", he said. According to him, this corridor will reduce the transit time of goods between India and Europe by 40%, in addition to including an electric transmission line, a green hydrogen gas pipeline and an advanced digital infrastructure.
To materialize this vision, Von der Leyen announced that the EU is ready to invest through the program global gateway, which allocates 300.000 billion euros to infrastructure projects around the world. "Europe is open for business and ready to invest in our shared future with India."He said.
A key year for EU-India relations
The renewed engagement between the EU and India comes at a time when both sides are seeking to diversify their trade relations and strengthen their cooperation in response to global challenges. Von der Leyen made it clear that the EU considers this relationship one of its strategic priorities: "This is not the time to limit our cooperation. It is the time to unlock its true potential.".
For the President of the European Commission, 2025 represents a "a historic window of opportunity to build an indivisible partnership between Europe and India"Quoting the French writer Romain Rolland, concluded his speech by stating: "If there is one place on Earth where all of humanity's dreams have found a home, that place is India. And today we are one step closer to making our shared dream a reality.".
With this optimistic message, the EU and India are heading towards a closer and more transformative relationship in the coming years.
Any questions about this news?
Talk to Coexia, the AI of the foreign trade
