- Finalization of the India-EU Free Trade Agreement (FTA): Both leaders emphasized the importance of concluding the long-negotiated FTA to unlock significant economic potential, boost investments, create jobs, and foster innovation.
- Advancement of the India-Middle East-Europe Economic Corridor (IMEC): The IMEC was highlighted as a transformative initiative aimed at enhancing trade routes and connectivity between India, the Middle East, and Europe, thereby strengthening economic ties and creating resilient supply chains.
- Strategic Cooperation in the Indo-Pacific Region: The discussions underscored the shared commitment to ensuring peace, stability, and prosperity in the Indo-Pacific through collaboration in maritime security, connectivity, and supply chain resilience.
The Indian Prime Minister, Narendra Modi, and the President of the European Commission, Ursula von der Leyen, held a high-level meeting on Friday to strengthen the strategic partnership between India and the European Union (EU). The discussions focused on the completion of the India-EU Free Trade Agreement (FTA), the expansion of investment opportunities, and cooperation in the Indo-Pacific region.
Speaking alongside von der Leyen, Modi reaffirmed the importance of collaboration between India and the EU, calling the Union a “natural and indispensable partner” in an evolving geopolitical landscape. He also emphasized the fundamental role of the India-Middle East-Europe Economic Corridor (IMEC), describing it as a transformative initiative. “IMEC is a game-changer for trade and connectivity,” he stated. “Not only will it strengthen economic ties between India and Europe, but it will also create a stable and resilient supply chain that will benefit the entire region.”
The President of the European Commission expressed the EU’s full support for the project, highlighting its strategic significance. “IMEC is a historic initiative that will redefine trade routes between India, the Middle East, and Europe,” said von der Leyen. “The EU is fully committed to making this corridor a success. It will strengthen supply chains, reduce transit times, and create new economic opportunities for businesses on both sides.”
Von der Leyen also stressed the need to finalize the long-negotiated India-EU Free Trade Agreement as soon as possible. “Our economies are complementary, and we must seize this opportunity to conclude an ambitious trade deal,” she declared. “An FTA between the EU and India will unlock immense potential, increasing investments, job creation, and innovation. We are closer than ever to making it a reality.”
The discussions also touched on key geopolitical issues, including the Russia-Ukraine conflict and rising tensions in the Middle East. However, a significant part of the talks focused on the Indo-Pacific region, where India and the EU share strategic interests. Modi underscored the importance of regional stability, stating: “For a free and open Indo-Pacific, India and the EU must collaborate to ensure peace, stability, and prosperity in the region. Our cooperation in maritime security, connectivity, and supply chains will shape the future of the global economy.”
Trade remained a central point of discussion, with both leaders reviewing progress in economic relations. In the 2023-24 financial year, bilateral trade in goods between India and the EU reached $135 billion, with Indian exports totaling $76 billion and imports from the EU amounting to $59 billion. Trade in services also hit a new record of $53 billion, with Indian exports at $30 billion and imports at $23 billion. The EU remains one of India’s largest economic partners, with European investments in the country exceeding $117 billion and around 6,000 European companies operating in the Indian market. Indian investments in the EU, on the other hand, are estimated at approximately $40 billion.
Following the meeting, Modi and von der Leyen will issue a joint statement outlining key areas of cooperation, further strengthening the strategic role of the India-EU partnership in an increasingly complex global context.
This is the first visit by Ursula von der Leyen and the EU College of Commissioners outside the European Union in this mandate, highlighting India’s importance at a time when the EU is under pressure due to trade tariffs imposed by Donald Trump’s White House, the war in Europe following Russia’s invasion of Ukraine, the conflict in the Mediterranean, and other geopolitical shifts.
Vas is an Italian-Indian entrepreneur, advisor and analyst who founded the Indo-Mediterranean Initiative (cnky.in) in 2024. It was launched at the alter of Augustan peace, the Ara Pacis in Rome which eventually symbolised Pax Romana. He is the Chief Representative, Italy for the Indian Chamber of Commerce, India's oldest Chamber.
