New Delhi: India and the European Union have prepared a blueprint on ties, including in security, trade and technology, and the two sides will launch a “bold and ambitious” roadmap on ties at the all-important bilateral summit to be held in India later this year, Prime Minister Narendra Modi said on Friday afternoon after talks with European Commission president Ursula von der Leyen at Hyderabad House here, as he declared that directions have been issued by the two leaders to their trade negotiation teams to finalise a free trade agreement by the end of 2025.
The EC is the executive body of the 27-member nation-EU and handles its day-to-day functioning. The EC president also pledged her “total commitment” to an FTA between the two sides that would be the “largest deal anywhere in the world”.
But it won’t be easy. The EU is pressing for a reduction of Indian tariffs on European cars and wines/spirits. EU officials made it clear on Friday evening that “without a substantial agreement on cars, there will be no FTA”. New Delhi said later in the evening that there was a clear direction on the FTA by the two leaders and that it has to be done “quickly in a mutually beneficial and balanced manner”. A joint statement said the leaders “asked officials to work as trusted partners to enhance market access and remove trade barriers and also tasked them to advance negotiations on an Agreement on Investment Protection and an Agreement on Geographical Indications”.
Hailing the two sides’ shared values, including democracy, Mr Modi said in his remarks after the talks that the relationship was “natural and organic”. On her part, a smiling and visibly delighted EC chief compared the alignment of the two sides to this week’s astronomical phenomenon of alignment of seven planets. “The planets are aligned, so are Europe and India… We have agreed to work on a new strategic agenda,” she said, adding that the EU wants to take ties with India to “new heights”. She also emphasised on “the need to build robust and diverse supply chains, such as for example semi-conductors… to avoid harmful dependencies”, with the two sides deciding to “explore joint research and development in the field of chip design”.
Speaking at an event in New Delhi ahead of the talks, Ms Von der Leyen also said the EU was exploring a “future defence and security partnership” with India on the lines of what the EU has with both Japan and South Korea. The joint statement said “the EU side welcomed India’s interest in joining the projects under the EU’s Permanent Structured Cooperation (PESCO) as well as to engage in negotiations for a Security of Information Agreement (SoIA)”.
In what is being seen in the context of China’s growing military assertiveness in the Indo-Pacific region, Mr Modi said after the talks: “Our (India-EU) growing cooperation on issues related to defence and security is a symbol of our mutual trust… Both sides agree on the importance of peace, security, stability and prosperity in the Indo-Pacific region. We welcome the decision of the EU to join the ‘Indo Pacific Oceans Initiative’. We will work together on Triangular Development projects for sustainable and inclusive development in the Indo-Pacific region and Africa.” The joint statement also focused on the need to “combat terrorism, including cross-border terrorism and terrorism financing in a comprehensive and sustained manner”, in what is being seen as a clear indication towards Pakistan-sponsored terrorism. The two sides also “expressed support for a just and lasting peace in Ukraine based on respect for international law, principles of the UN charter and territorial integrity and sovereignty”.
Hailing the visit of the EC president and over 20 EU College of Commissioners to India as “unprecedented’, Mr Modi said the EC president’s “visit to India has given new momentum, energy and enthusiasm to our partnership” and that “this journey is the biggest catalyst that will translate our ambition into action”. At a special briefing, the MEA’s secretary (west) Tanmaya Lal said the focus was on how to elevate and strengthen the strategic partnership between the two sides. Explaining the depth of the talks, the senior MEA official said as many as 20 Indian ministers had participated in the talks with the EU commissioners.
In his remarks to the media after the talks, Mr Modi said: “We have also agreed on increasing cooperation in semiconductors, AI, high performance computing and 6G. We have also decided to initiate a space dialogue… We have decided to conduct a Green Hydrogen Forum and Offshore Wind Energy Business Summit… In the field of connectivity, concrete steps will be taken, to take forward the India-Middle East-Europe Economic Corridor (IMEEC). I firmly believe that IMEEC shall serve as an engine that drives global commerce, sustainable growth and prosperity in the days to come… We welcome the new visa cascade regime of the EU.”
In her remarks after the talks, Ms Von der Leyen said: “I am here today with the whole College of Commissioners. Indeed, it is our first visit outside Europe since we took office in December. This shows how much we value our partnership. We want to take it to new heights. India is a like-minded friend. We are the two largest democracies in the world. And under your leadership, Prime Minister, it has been thriving. We are bound by shared convictions and values. From resilient supply chains to our shared interest in a free and open Indo-Pacific, we are working together.”
Outlining three main avenues, the EC chief said: “First, we will work together on economic growth. The potential is immense. Europe is already India’s biggest trading partner. Last year alone, we exchanged Euro 120 billion worth of goods. And over the past two decades, our trade has tripled… The second avenue we should explore is a common tech agenda… We agreed to launch a Joint Task Force on green hydrogen. Artificial Intelligence is advancing at a scale and speed never seen before. … And we will apply AI in the areas of natural hazards, climate change and bioinformatics. AI should be at the heart of our strategic agenda. The third avenue I see is deeper cooperation in security and defence. For Europe, India is a pillar of certainty in an increasingly uncertain world. … Now is the time to step up our security and defence cooperation on land, at sea and in space… Maritime security is just as essential. The Indian Ocean is a lifeline for global trade. Ensuring its security is vital, not just for India but for the whole world. We should also explore expanding our joint naval exercises, building on our very successful operations in the Gulf of Guinea and the Red Sea. Finally, we should deepen cooperation in protecting the cables that ensure data connectivity between India and the European Union.”
