India-EU talks on trade, global issues during EC chief’s visit

New Delhi: With Prime Minister Narendra Modi’s government hosting European Union President Ursula von der Leyen in New Delhi on Thursday and Friday, India and the 27-nation bloc will exchange views on United States President Donald Trump’s economic policies as well as his bid to end the Russia-Ukraine conflict.

The leaders will also add momentum to the negotiations for the India-EU Free Trade Agreement (FTA), apart from seeking expansion of bilateral cooperation in advanced technologies, according to diplomatic sources in New Delhi.

Leyen, the president of the European Commission, is arriving in New Delhi on Thursday, along with the European Union College of Commissioners. She and Modi will have a one-on-one meeting in addition to leading the respective delegations in the formal bilateral dialogue on Friday.

With the recent moves by the Trump Administration stoking fear of a global trade war, Modi and Leyen will discuss the US government’s moves to impose tariffs targeting both India and the EU.

The two leaders will discuss ways to end the impasse in bilateral negotiations for a trade deal, particularly on contentious issues like EU demands for India to lower tariffs on cars, whiskey and wine and India’s demands for concessions from the EU for its micro, small and medium enterprises. New Delhi also wants the EU to address its concerns over the Carbon Border Adjustment Mechanism (CBAM), which could result in higher duties on steel and aluminium exports from India to Europe.

In FY 2023-24, Bilateral trade in Goods with the EU stood at $135 billion (with exports to the EU at $76 billion and imports from the EU at $59 billion) making the 27-nation-bloc the largest trading partner for India in goods. The bilateral Trade in services in 2023 stood at $53 billion (comprising India’s exports worth $30 billion and imports worth $23 billion) registering the highest-ever trade in services. The EU investments in India are valued at over $117 billion with around 6,000 European companies present in India. India’s investments in the EU are valued at around $40 billion.

Modi and Ursula will also exchange views on Trump’s move to negotiate a deal with President Vladimir Putin to end Russia’s ‘special military operations’ in Ukraine, without involving the EU and Kyiv in the process.

This will be the first-ever visit of the EU College of Commissioners together to India and among the first such visits since the start of the mandate of the current European Commission in December 2024 after the European parliamentary elections held in June 2024.

The second ministerial meeting of the India-EU Trade and Technology Council and bilateral ministerial meetings between the European Commissioners and their Indian counterparts will also be held during the visit.

“India and the European Union are strategic partners since 2004 and their bilateral ties have expanded and deepened across a wide range of areas,” the Ministry of External Affairs stated. “As the two sides enter the third decade of the strategic partnership, the visit of President von der Leyen and the EU College of Commissioners will pave the way for further strengthening of bilateral relations based on growing convergences.”