• Von der Leyen expresses optimism for an EU-India free trade deal in 2024 despite anticipated challenges.
  • The EU is also exploring a security partnership with India amid growing tensions with the US under Trump.
  • Bilateral trade between India and the EU has reached $135 billion, nearly doubling in the last decade.

European Commission President Ursula von der Leyen has indicated that a free trade agreement between the European Union and India could be finalized this year, describing it as potentially "the largest deal of this kind anywhere in the world."

Speaking in Delhi during a historic visit accompanied by the entire College of Commissioners, von der Leyen acknowledged the challenges ahead but emphasized the importance of "timing and determination" in achieving this landmark agreement.

"I am well aware it will not be easy. But I also know that timing and determination counts," she said following her meeting with Indian Prime Minister Narendra Modi on Friday.

The visit marks the first such delegation since the European parliamentary elections in June 2024 and comes at a critical juncture in global trade relations.

The EU and India relaunched negotiations on the long-pending trade agreement in 2021, with another round of talks scheduled for March and an India-EU summit planned for later this year.

Beyond trade, von der Leyen revealed plans to explore a "Security and Defence Partnership" with India, similar to existing arrangements with Japan and South Korea, signaling Brussels' intent to strengthen its presence in the Indo-Pacific region.

This push for closer ties comes as tensions escalate between the United States and Europe following Donald Trump's return to the White House.

Trump has threatened to impose 25% tariffs on European goods, claiming the bloc was "created to screw the US."

Despite previous challenges in negotiations, particularly regarding agriculture and manufacturing, the economic relationship between the EU and India has flourished.

The bloc remains India's largest trading partner in goods, with bilateral trade reaching $135 billion in 2022-23—nearly doubling over the past decade. Currently, some 6,000 EU companies operate in India.

India has recently shifted its stance on free trade agreements, actively negotiating with multiple countries after years of skepticism.

This week, India and the UK resumed free trade talks after a year-long pause, and in 2023, India signed a $100 billion agreement with the European Free Trade Association after 16 years of negotiations.

Edited by Annette George