India and the European Union are set to make significant announcements at the India-EU Summit to be held on January 27 in New Delhi, which could be a turning point in the relationship between the two. According to diplomatic sources, the summit will witness the successful conclusion of Free Trade Agreement (FTA) negotiations, which have been pending for a long time and are hailed as one of the most important trade agreements that India has entered into in recent years, besides the consolidation of a strategic defence partnership and a mobility arrangement for Indian professionals in the European Union. The top leadership of the European Union, including European Council President Mr. Antonio Costa and European Commission President Ms. Ursula von der Leyen, will be the chief guests at India’s 77th Republic Day celebrations on January 26 before jointly co-chairing the summit. The presence of the EU’s military contingent in the Republic Day parade will be the first time the EU has participated in such an event outside Europe, and it will reflect the growing strategic relationship between the two. A document will be adopted by both sides to announce the conclusion of FTA negotiations, after which the agreement will be subject to legal scrutiny and ratification by the European Parliament and Council.
The European Union is India’s biggest trading partner, with trade in goods amounting to US$ 135 billion in the FY24, and the FTA is expected to unlock additional market access and economic complementarities. Although the negotiations have been moving ahead, there is still a discussion on sensitive areas such as the EU’s Carbon Border Adjustment Mechanism (CBAM). In addition to economic cooperation, the summit will also address key geopolitical developments. These agreements are expected to further enhance India’s position in global trade, security, and people-to-people ties with Europe.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.