EU's Strategic Shift: Embracing India's Trade Partnership

The European Union is planning to diversify its trade partnerships, aiming for a deal with India this year. This move comes as a response to higher U.S. tariffs. European Commission President Ursula von der Leyen highlighted ongoing talks with India and other nations to strengthen economic ties.

The European Union is pivoting towards new trade relationships as a means of reducing dependency on existing partners, driven by escalating U.S. import tariffs. On Thursday, European Commission President Ursula von der Leyen emphasized the bloc's strategic move to finalize a trade agreement with India within the year, speaking at a German business conference.

President von der Leyen underscored that Indian Prime Minister Narendra Modi has expressed a strong commitment to this trade pact. This assurance came during an official phone call on Wednesday, laying a significant foundation for the negotiations in the coming months.

Additionally, von der Leyen revealed that the EU is actively engaging in trade discussions with other potential partners including South Africa, Malaysia, and the United Arab Emirates. These efforts highlight the bloc's broader strategy to diversify its trade alliances globally.

(With inputs from agencies.)