The EU and India are deepening their partnership, establishing a free trade area that benefits both parties economically and signifies the strength of rule-based cooperation.
The European Union and India are making history by enhancing their partnership, as emphasized by Ursula von der Leyen, the President of the European Commission. They have established a free trade area that encompasses 2 billion people, showcasing the economic benefits for both parties involved. This collaboration sends a global message about the positive outcomes of cooperation grounded in rules, marking only the beginning of a more robust relationship in the future.
The European Commission reports that the trade between the EU and India amounts to over 180 billion euros annually, supporting approximately 800,000 jobs within the EU. However, European goods have been relatively underrepresented in the Indian market thus far. For instance, imports from Germany to India stood at only 17.7 billion USD in 2024, with France and Italy contributing 6.7 billion and 5.8 billion USD, respectively. In contrast, the United States exported goods worth 39.1 billion USD to India during the same period, indicating a significant imbalance in trade.
The article highlights the potential for growth in EU-India relations, especially in trade, as both sides plan to build on this recent success. They intend to further strengthen their economic connections and overcome current import challenges. This endeavor not only holds promise for bilateral dynamics but also for their respective positions on the global stage, attracting attention from other nations eager to engage in similar partnerships.
