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EU President Ursula von der Leyen said a free trade agreement between the European bloc and India is being finalised by this year, ahead of her talks with PM Narendra Modi.
European Commission President Ursula von der Leyen speaking at a think-tank in Delhi. (European Commission/X)
European Commission President Ursula von der Leyen, who landed in New Delhi on Thursday, said the European Union and India have the potential to be one of the defining partnerships of the 21st century and pushed for the start of a “new era” in relations between both sides.
Addressing an event in India, von der Leyen said, “Investing in our common future. This is the driving force of this new era of partnership between Europe and India. In troubled times great opportunities come. And I believe 2025 is a historic window of opportunity to build an indivisible partnership between Europe and India.”
“Above and beyond any economic or diplomatic relations, I believe it is culture that binds the people of India and Europe together. We have a shared love of sport, art and literature. Our students and academics work and deepen their knowledge together. And our companies do business together on a scale almost unmatched around the world. All of this makes us natural and long-standing partners as we start our third decade of strategic partnership,” she said.
As we enter the third decade of the 🇪🇺🇮🇳 strategic partnership, one thing is clear.The best is yet to come.
Together, we can shape the future and be one of the defining partnerships of this century↓ https://t.co/iCdRgmCSZD
— Ursula von der Leyen (@vonderleyen) February 28, 2025
India-EU Free Trade Agreement Likely This Year
Von der Leyen said an India-EU free trade agreement would be the largest deal of this kind anywhere in the world, and the European bloc has agreed with Prime Minister Narendra Modi to get it finalised this year.
Praising PM Modi’s ‘Viksit Bharat’ model, the EU President said it will help transform the economy and create millions of jobs from traditional manufacturing sectors to high-tech industries and innovation. “Europe is striving towards the same goal through our own economic and industrial transformation. I believe that we can help each other to reach our goals,” she said.
“Today, the EU is India’s largest trading partner, sitting ahead of both the US and China. European companies create 8 million jobs here in India. But we could do so much more by improving market access and tackling the barriers to trade,” Von der Leyen further said.
The EU is also exploring a future Security and Defence Partnership with India to step up combined work to counter common threats like cross-border terrorism, cyber attacks and maritime security threats. She also complemented India’s efforts to diversify military supply and access new capabilities.
Taking India-EU Ties To ‘The Next Level’
Von der Leyen stressed the need for an enhanced India-EU partnership in the face of global conflicts, particularly the Ukraine war and said both regions have the potential to be one of the defining partnerships of this century.
“So, I want this visit to be the start of this new era. Prime Minister Modi and I share the same view. It is time to take our EU-India Strategic Partnership to the next level. For our own security and our prosperity. For the common global challenges that we face. And for the benefit of our respective regions and our partners around the world,” she said.
She said this was not a time to “place limits on our cooperation” or “get stuck looking for agreement on every issue of regional or global concern”. She also laid out three priorities for strengthening India-EU ties: trade and technology, security and defence and connectivity and global partnership.
“The India-Middle East-Europe corridor launched here in New Delhi in 2023 during India’s G20 Presidency is a historic opportunity to bring this (India-EU connectivity) to life. It’s an amazing project. This can be a modern golden road – directly connecting India, the Arabian Gulf and Europe. With a rail link, that will make trade between India and Europe 40% faster,” she added.
Von der Leyen is scheduled to hold wide-ranging talks with PM Modi later today. This is her third visit to India after the G20 Summit in 2023 and a bilateral visit in 2022. This is also the first ever visit of the EU College of Commissioners together to India since the start of the mandate of the current European Commission in December 2024.
India and European Union are strategic partners since 2004 and their bilateral ties have expanded and deepened across a wide range of areas, according to the Ministry of External Affairs.
