Historic India-EU Trade Talks Set to Reshape Global Economic Landscape

European Commission President Ursula von der Leyen's visit to India marks a pivotal moment for India-EU relations. As chief guests at the Republic Day celebrations, European leaders engage in bilateral discussions aimed at formalizing a momentous trade agreement, reflecting broader efforts for closer economic and strategic cooperation between the regions.

The European Commission President, Ursula von der Leyen, arrived in New Delhi on Saturday, warmly welcomed by Minister of State for Commerce and Industry, Jitin Prasada. Alongside the European Council President, Antonio Luis Santos da Costa, von der Leyen is set to grace India's 77th Republic Day celebrations as a chief guest, underscoring the strengthening ties between India and the European Union (EU).

Earlier this week at the World Economic Forum in Davos, von der Leyen described the trade talks with India as 'historic'. India's Commerce Minister, Piyush Goyal, echoed her sentiments, calling the anticipated free trade agreement 'the mother of all deals'. This partnership aims to expand market access, countering restrictive global trade dynamics influenced by US tariffs and Chinese export curbs. Furthermore, discussions with EU ambassadors led by India's External Affairs Minister, S. Jaishankar, highlighted an urgent need for collaboration to bolster global economic stability amid unpredictable US policies.

Both India and the EU face economic challenges emanating from US President Donald Trump's trade tactics. While India contends with prohibitive tariffs on certain products, the EU is yet to finalize a contentious trade deal with Washington. EU foreign policy chief, Kaja Kallas, has underscored India's vital role in Europe's economic strategy. Together, the EU and India, sharing nearly a quarter of the global populace and GDP, are committed to advancing a vital security and defense partnership, reinforcing global trade networks and resilience.

(With inputs from agencies.)