EU and India strengthen ties with new trade and tech pact
By the end of the year, the European Commission intends to complete a free trade agreement with India. The EU also aims to bolster cooperation with Delhi in the fields of technology, defence, and security, announced European Commission President Ursula von der Leyen on Friday, concluding the commissioners' two-day visit to the country.
On Thursday and Friday, von der Leyen and the commissioners engaged in discussions in Delhi with India's Prime Minister Narendra Modi and his ministers about enhancing bilateral cooperation. This marked the Commission's inaugural visit to India and its first trip outside Europe since the start of its term in December.
This is a very outstanding event, and they say that this event signals growth and transformation, and that's exactly the moment we find ourselves in. The planets are aligned, and so are India and Europe, emphasised the EU President at a press conference.
Modi noted that the past two days were filled with over 20 ministerial meetings with EU commissioners, focused on various cooperation sectors. "We have prepared a blueprint for collaboration in the areas of Trade, Technology, Investment, Innovation, Green Growth, Security, Skilling and Mobility. We have directed our teams to conclude a mutually beneficial Bilateral Free Trade Agreement by the end of this year," he enumerated.
Economic growth
Von der Leyen stated that EU cooperation with India will focus on three areas. The first is economic growth.
"Europe is already India's biggest trading partner. Last year alone, we exchanged about €120 (approximately £95 billion), and over the past two decades, our trade has tripled. One of the best examples of this partnership is the new Federation of European Businesses in India. It brings together 6,000 EU companies which have created 8 million direct and indirect jobs in this economy," she said.
The EU President and India's Prime Minister also declared the intention to finalise discussions by the end of the year on a free trade agreement between the Union and India. Von der Leyen stressed that the current geopolitical situation necessitates decisive action more than ever; she announced that both parties wish to combine efforts in the research, innovation, and market growth sectors.
"This allows us to tackle important economic challenges together and to build robust and diverse supply chains, such as, for example, in semiconductors, a very important topic we have been working intensively on," she noted.
Digital cooperation
The second area of cooperation highlighted was technology, including 6G, computerisation, clean technologies, bioinformatics, as well as artificial intelligence, and its application in combating natural disasters or climate change. "Our digital cooperation has also an ambitious industrial agenda. We're committed to strengthen cooperation in semiconductor R&D and manufacturing, and we are cooperating in the culture of secure telecommunication networks," said von der Leyen.
As she added, technology is only as useful as the people who utilise it, so the aim will be to improve the digital skills of residents. "Let's increase students and skilled workers exchanges," the politician announced.
Defence and security
The third area of cooperation is to be defence and security, chiefly preventing cyber and hybrid attacks, especially at sea, including disruption to undersea cables, as well as strengthening and diversifying arms production.
Modi announced that during the meeting with EU commissioners, an opportunity arose to create a bold and ambitious action plan for the India-EU partnership after 2025. It will be inaugurated at the next India-EU summit, which will take place this year.
