India and EU Aim for Landmark Trade Pact, Strengthen Defence Ties

Prime Minister Narendra Modi and European Commission President Ursula von der Leyen aim to finalize an ambitious India-EU free trade agreement this year. They also plan to enhance defense cooperation, particularly in the Indo-Pacific region, amidst global economic pressures and China's growing presence.

Prime Minister Narendra Modi and European Commission President Ursula von der Leyen have announced plans to conclude an ambitious India-EU free trade agreement by the end of this year. This decision comes as the global economy faces potential impacts from looming U.S. tariffs under the Trump administration.

The leaders also agreed to expand defense cooperation, particularly in the Indo-Pacific region. Von der Leyen stated that the European Union is looking to secure a defense pact with India, similar to its alliances with Japan and South Korea, as a strategic move to counterbalance China's regional presence.

The trade deal negotiations resumed in June 2022 after a pause since 2013. Both leaders expressed commitment to finalize a mutually beneficial agreement and also addressed broader collaboration in technology, investment, and green growth. Modi emphasized the partnership's foundation in mutual trust and democratic values.