Planets aligned, EU-India FTA by year end

After years of negotiations for an

India-EU free trade agreement

(FTA), PM Narendra Modi and European Commission President Ursula von der Leyen finally set a deadline - end of this year - for a balanced, ambitious and mutually beneficial agreement, in a significant takeaway from the EU leader’s visit.
Describing India-EU partnership as natural and organic - one that’s based on trust and shared democratic values - Modi announced both leaders asked their teams to finalise by the year end what would be, according to von der Leyen, the largest deal of its kind in the world. The leaders asked the officials to work as trusted partners to enhance market access and remove trade barriers, according to a joint statement.
India and the EU will hold the 10th round of FTA negotiations in March since the talks were relaunched in 2021. Agreeing that meeting the deadline won’t be easy, von der Leyen said timing and determination matters. EU officials reiterated after the meeting that they will continue to seek reduction of tariffs by India on wines and cars, without which the agreement won’t be possible, but said that commitment matters at the political level.
Modi also said that to strengthen the investment framework, the leaders discussed progress on the ongoing discussions for an Investment Protection and GI (Geographical Indications) Agreement this year. They agreed to take concrete steps to carry forward the India-Middle East-Europe Economic Corridor initiative, with Modi saying it will drive global commerce, sustainable growth and prosperity in the future.

While there was talk about enhancing cooperation in AI, semiconductors and space, both leaders also focused on peace and security in the Indo-Pacific, agreeing to work for inclusive development in third countries in the region. In a joint statement, they reaffirmed their commitment to promote a free, open, peaceful and prosperous Indo-Pacific built on international law and mutual respect for sovereignty. Modi welcomed the EU joining the Indo-Pacific Oceans Initiative (IPOI).
In her media statement, the president also said that her visit was taking place at a time the 7 planets in the solar system had come into perfect alignment. “They say this signals transformation and growth. The planets are aligned – and so are Europe and India,’’ she said.
The joint statement said that the leaders expressed satisfaction at growing cooperation in the defence and security domain, including joint exercises and collaboration between Indian Navy and EU Maritime security entities. The EU side also welcomed India’s interest in joining projects under the EU’s Permanent Structured Cooperation (PESCO) and in negotiating a Security of Information Agreement (SoIA). Citing threats from authoritarian states, von der Leyen said that now is the time to step up security and defence cooperation on land, at sea and in space and have more joint exercises in the Indian Ocean.
The leaders also committed to exploring a formal security and defence partnership. “They reiterated their commitment to international peace and security, including maritime security by tackling traditional and non-traditional threats to safeguard trade & sea lanes of communication,’’ said the statement.
Modi said that the leaders have prepared a blueprint for collaboration in the areas of trade, technology, investment, innovation, green growth, security, skilling and mobility.
“Our growing cooperation on issues related to Defence and Security, is a symbol of our mutual trust. We will take forward our cooperation on Cyber Security, Maritime Security and Counter Terrorism,’’ said the PM, adding a bold and ambitious roadmap will be launched at the India-EU summit later this year. The leader stressed in the joint statement the need for stronger international cooperation to combat terrorism, including cross-border terrorism and terrorism financing in a comprehensive and sustained manner.