It's long been said in diplomatic circles that India distrusts the European Union (EU). New Delhi has preferred to carry out bilateral negotiations with France or Germany, rather than with Brussels. Have times changed? The Asian giant with 1.4 billion inhabitants is on a quest for growth and development and Europe is in search of new partnerships. Both have been shaken by Donald Trump's return to the White House. Both share the same weak point: a dependence on China.
On February 28, in New Delhi, Narendra Modi and Ursula von der Leyen committed to finalizing a "mutually beneficial" free trade agreement by the end of 2025 and to diversifying cooperation by expanding it to include security and defense. "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 security and our prosperity," said von der Leyen.
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Europe is India's leading trade partner, ahead of the US and China. Trade in goods reached $135 billion in 2023, while trade in services reached $53 billion, but there is considerable scope for growth, as the subcontinent currently accounts for only 2.2% of the EU's trade in goods and is the EU's 10th largest trading partner. The Commission hopes to find new opportunities on the Indian market, particularly for cars, agricultural products, wine and spirits.
Informed diplomats pointed out, however, that talks began in 2007 but never came to fruition. At the time, the two partners had given themselves two years to reach a trade agreement. Almost 20 years have passed, and nothing has materialized. In June 2022, the two protagonists resumed negotiations suspended in 2013. They hit several major obstacles.
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