EU-India Trade Deal Nears Historic Finish Line, Says Von der Leyen
European Commission President Ursula von der Leyen announced at the World Economic Forum that the European Union is on the verge of finalising a landmark trade agreement with India, calling it a potential “game-changer” for both economies.
Key Deal Points
- Diversify supply chains and reduce dependence on China.
- Enhance cooperation on climate action and digital transformation.
- Strengthen the strategic partnership between the two “natural partners”.
- Boost job creation and economic growth.
“We are close to sealing a historic trade deal with India. This will be a game-changer for both economies,” she said.
Strategic and Economic Imperatives
Von der Leyen emphasised the deal’s role in building resilient supply chains.
“The trade deal will help us to diversify our supply chains and reduce our dependence on China,” she said.
She also highlighted joint efforts on global challenges.
“The trade deal will also help us to cooperate on climate change and digital transformation,” she said.
A Long-Awaited Agreement
Negotiations for the EU-India trade pact began in 2007, faced a prolonged stall, and were revived in 2021. Both sides are now committed to a swift conclusion.
“We are committed to concluding the trade deal as soon as possible,” she said.
The agreement is poised to significantly enhance two-way trade and investment. The EU is currently India’s largest trading partner, while India ranks as the EU’s ninth-largest.
Analysts see the pact as a strategic move to counterbalance China’s expanding economic influence in the region.
