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India-EU Trade Cooperation: What is von der Leyen striving for before the historic free trade agreement?

India-EU Trade Cooperation: What is von der Leyen striving for before the historic free trade agreement?

Von der Leyen, who is accompanied by the President of the European Council, will attend the Republic Day parade as the chief guest, a move that highlights the growing importance of India-EU relations.

European Commission President Ursula von der Leyen on Sunday described India and the European Union as close partners who can offer a different approach to global cooperation. She said their growing strategic relationship could help “heal a fractured world” that is facing conflict, protectionism and political uncertainty. In her first message after arriving in the national capital, von der Leyen stressed the need for openness and dialogue in global affairs.

“I’m so glad to be in India today. India and Europe have made a clear choice. The choice of strategic partnership, dialogue and openness. Leveraging our complementary strengths. And building mutual resilience. We are showing a fractured world that another way is possible,” Leyen wrote on X (formerly Twitter).

Leyen’s 4-day India visit and Republic Day parade presence

Her four-day visit comes ahead of the 16th India-EU Summit scheduled later this week and is being seen as an important step in strengthening political, economic and strategic ties between New Delhi and Brussels. Von der Leyen, who is accompanied by the President of the European Council, will attend the Republic Day parade as the chief guest, a move that highlights the growing importance of India-EU relations.

Union Minister Jitin Prasada received her on arrival, while the External Affairs Ministry called the visit a major milestone. “Charting the next phase of the India-EU Strategic Partnership. A warm welcome to the President of the European Commission Ursula von der Leyen on her State Visit to India,” ministry spokesperson Randhir Jaiswal said.

“As the world’s two largest democracies, India and the EU share a partnership rooted in mutual trust and shared values,” he added.

A key focus of the visit is the long-pending Free Trade Agreement, which both sides see as crucial for deeper economic cooperation. Von der Leyen has earlier referred to the proposed agreement as the “mother of all deals”. “It will create a market for 2 billion people or about one-fourth of the global GDP,” she had said.

Economic impact and future cooperation

The agreement aims to remove tariffs on over 90 per cent of traded goods, which could benefit sectors such as garments, pharmaceuticals, engineering goods and IT services. Apart from trade, discussions will also cover cooperation in technology, climate action, clean energy, digital infrastructure and security.

India and the EU are also expected to increase cooperation in research, innovation and defence-related technologies. Bilateral trade between India and the European Union currently stands at 136.53 billion US dollars, making the EU one of India’s biggest trading partners.

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