The top leadership of the European Union (EU) has arrived in India for high-level discussions on an ambitious free trade agreement (FTA) with India, amid concerns over U.S. President Donald Trump’s threat to impose 25% tariffs on goods from the 27-member bloc.
European Commission President Ursula von der Leyen reached New Delhi on Thursday, accompanied by 20 members of the EU’s 27-strong College of Commissioners. The delegation is set to hold meetings with Prime Minister Narendra Modi and senior ministers, including External Affairs Minister S. Jaishankar, Commerce Minister Piyush Goyal, and Finance Minister Nirmala Sitharaman. This marks the first-ever visit by the College of Commissioners to India.
Strategic Partnership in Focus
“In an era of conflicts and intense competition, you need trusted friends. For Europe, India is such a friend and a strategic ally. I’ll discuss with @narendramodi how to take our strategic partnership to the next level,” Von der Leyen posted on X (formerly Twitter) after being received at Delhi airport by Minister of State Anupriya Patel.
The visit takes place just hours after Trump announced his intention to slap tariffs on EU goods, claiming that the bloc was created to “screw the United States.” The EU has vowed to respond “firmly and immediately” to any unjustified tariffs.
Push for India-EU Free Trade Agreement
Negotiations for the India-EU FTA, which resumed in 2022 after almost a decade-long pause, are expected to be a key focus of the discussions between Modi and Von der Leyen. Talks will also cover collaboration in technology, defence, security, space, green energy, and climate action.
The second ministerial meeting of the India-EU Trade and Technology Council (TTC) will take place on Friday. The TTC, established in 2022 to enhance cooperation in digital and strategic technologies, green technologies, and trade, is a crucial platform for both sides. The Indian delegation will include Jaishankar, Goyal, and Electronics and Information Technology Minister Ashwini Vaishnaw. Topics such as 6G, artificial intelligence, semiconductors, and telecommunications collaboration are on the agenda.
“The EU has so far established a TTC only with two countries—India and the U.S.,” an Indian official said, underlining the significance of this partnership. “Cooperation has intensified, and there is a positive intent to work towards concrete outcomes.”
Strengthening Defence and Security Ties
Defence and security cooperation is emerging as a crucial pillar of the India-EU relationship. There are discussions on strengthening naval coordination between the Indian Navy and EU member states in critical regions such as the Red Sea. Joint military exercises and a proposed agreement on information security—allowing India to participate in EU-led defence projects—are also on the table.
As part of enhanced defence ties, the EU will station a liaison officer at the Indian Navy’s Information Fusion Centre-Indian Ocean Region (IFC-IOR) in Gurugram. The centre, established in 2018, monitors maritime activity and critical developments in the region alongside partner nations.
EU’s Engagement with India
Von der Leyen commenced her visit by paying tribute to Mahatma Gandhi at Rajghat. Following their meeting on Thursday evening, Jaishankar posted on X, “Appreciate her thoughts on re-energising India’s engagement with Europe. The wide-ranging participation of Indian Ministers and EU College of Commissioners during this visit stands testimony to the importance we place on deeper India-EU ties.”
A senior EU official stated that Von der Leyen’s visit would help forge a “new strategic agenda” for India-EU relations, covering trade, investment, technology, digitalisation, and connectivity.
India’s Stand on Russia-Ukraine Conflict
While the EU is expected to raise concerns over India’s trade relations with Russia, particularly regarding sensitive technologies, an Indian official reiterated that New Delhi has adhered to all UN sanctions. “We are open to discussions with the EU on this issue and have sought more details,” the official said. Recently, the EU imposed sanctions on five Indian entities for allegedly supplying sensitive technologies to Russia.
Economic Ties Between India and EU
The EU is India’s largest trading partner in goods, with bilateral trade growing by 90% over the past decade. In 2023-24, two-way trade in goods was valued at $135 billion, with Indian exports accounting for $76 billion. Trade in services stood at $53 billion, with Indian exports worth $30 billion.
From April 2000 to September 2024, cumulative foreign direct investment (FDI) inflows from the EU into India reached $117.4 billion, constituting 16.6% of India’s total FDI equity inflows. During the same period, India’s FDI outflows to the EU amounted to $40.04 billion.
Sources By Agencies