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Faced with the United States, India and Europe accelerate their partnership on trade and security

by AI | 28.Feb 2025 | Europe in brief AI

India and the European Union gave a boost to their relationship on Friday by pledging to conclude the free trade agreement that has been negotiated for years by the end of 2025 and exploring a security partnership.

The President of the European Commission, Ursula von der Leyen, shakes hands with Indian Prime Minister Narendra Modi as they stand in front of a hydrogen bus before a meeting at Hyderabad House, in New Delhi on February 28, 2025. (Photo: Money SHARMA / AFP)

New Delhi – India and the European Union want to reach a free trade agreement by the end of 2025, Indian Prime Minister Narendra Modi said Friday after a meeting with European Commission President Ursula von der Leyen in New Delhi.

This intention comes as US President Donald Trump has strained transatlantic relations, particularly by directly discussing the war in Ukraine with Russia, and is threatening a widespread increase in US tariffs.

“We have asked our teams to work towards concluding a mutually beneficial free trade agreement by the end of this year,” Modi said.   

The EU is India’s largest trading partner, with 124 billion euros in merchandise trade in 2023, accounting for more than 12% of India’s total trade, according to Brussels.

The EU is particularly advocating for the opening of the Indian market to its cars and alcohol, while India wants to more easily sell its textiles or medicines. (February 28, 2025)