India-EU Trade Accord Gains Momentum Amid Geopolitical Strains

Indian Prime Minister Narendra Modi and European Commission President Ursula von der Leyen have agreed to expedite negotiations on a free trade pact this year. Despite past delays, both parties aim to enhance cooperation, focusing on industries like pharmaceuticals and technology, while addressing tariff and visa challenges.

Indian Prime Minister Narendra Modi and EU chief Ursula von der Leyen have renewed efforts to finalize a free trade agreement within the year, according to a statement on Friday. The meeting occurs amidst rising geopolitical tensions, highlighting intentions for strengthened ties.

Von der Leyen emphasized the potential for partnership, advocating for an ambitious trade deal encompassing diverse industries like semiconductors and clean energy. The India-EU discussions, revived in 2021, address issues such as investment protection and geographical indicators.

Despite hurdles, including tariffs and visa regulations, both parties see opportunities in collaboration. With two-way trade reaching $137.5 billion, the EU remains India's largest trading partner, signaling benefits of formalizing their strategic partnership.

(With inputs from agencies.)