New Delhi is preparing to host a pivotal summit on January 27th, as the European Union and India move closer to finalizing a landmark free trade agreement and forging a new partnership focused on defense and security. European Commission President Ursula von der Leyen, in an exclusive interview, emphasized the importance of this deepening relationship amidst a shifting global landscape.
Strengthening Ties in a Challenging World
Von der Leyen stated that the EU and India, as the world’s two largest democracies, share a “deep commitment to democracy, human rights, international law, and multilateralism.” She highlighted the urgency of strengthening cooperation given the increasing challenges to these values, asserting that a stronger partnership will help “preserve a cooperative, rules-based order.” The expected outcomes of the summit include the conclusion of the Free Trade Agreement (FTA) and a new Security and Defence Partnership.
The Free Trade Agreement: A “Mother of All Trade Deals”
Negotiations for the FTA are in their final stages, with both sides working to resolve remaining issues, including those related to the Carbon Border Adjustment Mechanism (CBAM), automobiles, and steel. Von der Leyen indicated a commitment to finding “workable, mutually beneficial solutions.” The agreement is projected to eliminate €4 billion in tariffs for exporters, supporting jobs in both Europe and India.
A New Era of Security Cooperation
The proposed Security and Defence Partnership is described as a potential “game changer,” focusing on cooperation in areas such as defense industries, maritime security – particularly in the Indian Ocean – and secure communications. While EU Member States retain authority over defense technology exports, the partnership aims to diversify military supply chains and improve access to new capabilities. This cooperation is seen as vital for shared security, extending from Europe to the Indo-Pacific region.
Navigating Complex Geopolitical Dynamics
Von der Leyen addressed India’s relationship with Russia, stating that the EU offers “reliability, stability, and genuine partnership built for the long term,” emphasizing “cooperation by choice” rather than pressure for alignment. The EU also reaffirmed its commitment to upholding the sovereignty of Denmark and Greenland, and will increase investment in Greenland.
The India–Middle East–Europe Economic Corridor
The summit is also expected to address the India–Middle East–Europe Economic Corridor (IMEC), with continued support through the EU’s Global Gateway program. Projects like the EU–Africa–India Digital Corridor and Green Shipping Corridors are intended to bolster trade and connectivity between the regions.
Frequently Asked Questions
What are the two major expected outcomes of the EU-India summit?
The two major expected outcomes are the conclusion of the EU-India Free Trade Agreement and a new Security and Defence Partnership.
What is the potential economic impact of the FTA?
The FTA is expected to eliminate €4 billion in tariffs for exporters and support good, sustainable jobs for millions of workers in both India and Europe.
What areas will the Security and Defence Partnership focus on?
The partnership will focus on cooperation in defense industries, maritime security – especially in the Indian Ocean – and secure communications, as well as diversifying military supply chains and improving access to new capabilities.
As the EU and India move towards a deeper strategic partnership, what challenges and opportunities do you foresee in balancing economic growth with shared values and security concerns?
