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EU’s top team in India to bolster relations

Thomas Barnes by Thomas Barnes
February 27, 2025
in Economy
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'Very hands-on': EU chief Ursula von der Leyen. ©AFP

New Delhi (AFP) – The EU’s top team arrived in India on an “unprecedented” visit Thursday, aiming to broaden commercial and diplomatic ties and hedge against souring relations with the United States. EU chief Ursula von der Leyen and her college of commissioners are to hold talks with Prime Minister Narendra Modi and his Hindu nationalist government in New Delhi during the two-day trip.

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“In this era of conflicts and intense competition, you need trusted friends,” Von der Leyen posted on X after landing in New Delhi. “For Europe, India is such a friend and a strategic ally. I will discuss with Narendra Modi how to take our strategic partnership to the next level,” she added. The delegation is expected to focus on higher trade with the world’s most populous country, lower tariffs to enter its rapidly expanding market, and resilient supply chains with an eye on the Asia-Pacific and China’s growing regional profile.

Von der Leyen began her trip by paying her respects to the revered Indian independence hero Mahatma Gandhi at New Delhi’s Raj Ghat memorial before meeting with the foreign minister Subrahmanyam Jaishankar. She is scheduled to meet Modi on Friday to discuss topics ranging from artificial intelligence to energy. “We aim to advance discussions on a free trade agreement, expand cooperation on digital technologies, particularly AI, and accelerate our work on clean technologies like electric vehicles and green hydrogen,” she said in a Times of India interview.

Almost all of the EU’s 26 commissioners are joining von der Leyen in what the EU chief is billing as the first visit of its kind to the South Asian giant — and the first outside Europe for the new college that took office in December. Brussels has been working to broaden its horizons since US President Donald Trump won back the White House in November and undercut European allies by launching Ukraine talks with Russia’s Vladimir Putin. India has long pursued a policy of strategic autonomy in foreign affairs. Historically close to Russia, its traditional supplier of military hardware, it has resisted Western pressure to distance itself from Moscow following its invasion of Ukraine.

The visit “will send the message that Europe is shoring up other partners, including India, as much as they focus on the task of resetting EU-India ties”, The Hindu newspaper reported.

– ‘Finish line’ –

The EU is India’s largest trading partner, accounting for 124 billion euros ($130 billion) worth of trade in goods in 2023 — more than 12 percent of total Indian trade, according to Brussels. India’s expanding market offers key opportunities for sectors ranging from defence to agriculture, cars and clean energy. Yet, protected by high tariffs, it currently accounts for only 2.2 percent of EU trade in goods. Negotiations for a trade deal could get a boost from a White House bent on slapping tariffs on friends and foes alike.

“We are now preparing for a 10th round of negotiations in Brussels,” von der Leyen said in the interview. “There is more work to be done at a technical level, but I’m convinced we can cross the finish line if we both commit to it”. The EU wants greater access to the Indian market for its cars, spirits and wines — all contentious subjects with a strong domestic lobby on both sides. New Delhi meanwhile sees complementarity with the EU in areas including clean energy, urban infrastructure and water management.

“They have the technology and competency — and we have the scale,” an Indian foreign ministry official said Thursday. India has long pushed the EU for higher investments, co-ventures with local partners, and more streamlined migration for its skilled workforce of IT professionals, engineers and healthcare workers.

© 2024 AFP

Tags: diplomacyIndiatrade
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