EU Chief Ursula von der Leyen Begins India Visit to Boost Trade and Strategic Ties
New Delhi, Feb 27 – European Commission President Ursula von der Leyen arrived in India on Thursday for a two-day visit aimed at strengthening bilateral cooperation in trade, investment, and clean energy. Her visit comes amid global concerns over U.S. economic policies under President Donald Trump.
Accompanied by the European Union (EU) College of Commissioners, von der Leyen was received at the airport by Minister of State for Health and Family Welfare Anupriya Patel.
Key Agenda: Trade, Defence, and Strategic Cooperation
On Friday, she will hold high-level discussions with Prime Minister Narendra Modi to advance a new strategic agenda, focusing on enhancing economic and trade ties. The two leaders are expected to review the ongoing negotiations for an ambitious India-EU free trade agreement.
The EU is keen on strengthening trade relations with India to diversify its economic dependencies beyond China. European officials have indicated that Brussels is likely to push for lower Indian tariffs on automobiles, wine, and agricultural products.
With the visit coinciding with the third anniversary of the Ukraine war, von der Leyen is also expected to urge India to support the enforcement of Western sanctions against Russia.
In addition to trade, the EU is looking to expand its defence and security ties with India, particularly in the Indo-Pacific region, where concerns over China's military activities are growing.
Economic and Investment Landscape
India and the EU share a strong economic relationship. In the financial year 2023-24, bilateral trade in goods reached $135 billion, with Indian exports at $76 billion and imports at $59 billion, making the EU India's largest trading partner in goods.
In the services sector, bilateral trade stood at $53 billion in 2023, with India exporting $30 billion worth of services and importing $23 billion—the highest-ever trade volume in services between the two sides.
The EU remains a significant investor in India, with European investments totaling $117 billion across 6,000 companies operating in the country. Conversely, India's investments in the EU stand at $40 billion.
Connectivity and Strategic Partnerships
Both India and the EU are also committed to strengthening connectivity under the India-EU Connectivity Partnership, launched in 2021, which includes collaborative projects in third countries.
At the G20 Leaders' Summit in New Delhi in September 2023, India, the EU, France, Germany, Italy, Saudi Arabia, the UAE, and the U.S. signed an MoU to develop the India-Middle East-Europe Economic Corridor (IMEC)—a major initiative aimed at enhancing economic linkages across these regions.
Looking Ahead: India-EU Summit
Von der Leyen’s visit is expected to lay the groundwork for a new strategic agenda, set to be unveiled at the upcoming India-EU Summit in the second half of 2024. The focus remains on reinforcing trade, investment, and security cooperation while addressing global economic challenges.
With Europe closely watching U.S. trade policies, the EU sees India as a crucial economic partner for future growth and stability. The upcoming discussions will likely set the stage for deeper economic integration between the two sides.
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