EU President's India Visit: Trade, Tariffs & Security

New Delhi, Feb 26 (PTI) European Commission President Ursula von der Leyen will begin a two-day trip to India on Thursday to expand two-way cooperation in areas of trade, investment and clean energy amid increasing global concerns over US President Donald Trump's economic policies.

Von der Leyen, to be accompanied by the European Union (EU) College of Commissioners, or senior political leaders of the 27-member states of the bloc, will hold extensive talks with Prime Minister Narendra Modi to firm up a new strategic agenda to shore up cooperation in several critical areas.

The two leaders are expected to take stock of ongoing negotiations for an ambitious India-EU free trade deal. The EU is looking at enhancing the trade ties with India with an aim to de-risk its relations with China, an EU official said.

The EU is likely to call on India to bring down tariffs on cars, wine and agricultural products, he indicated.

As the high-level visit comes days after the third anniversary of Ukraine war, Von der Leyen is likely to urge India to help effective implementation of Western sanctions against Russia.

The EU is also keen to expand defence and security ties with India, especially in the Indo-Pacific -- a region that has been witnessing growing Chinese military muscle-flexing.

The visit is aimed at finalising the broad contours of a new strategic agenda that is expected to be unveiled at the next India-EU summit scheduled in second half of this year in India, the official cited above said.

However, the main focus of the EU leadership's visit to New Delhi is expected to be on expanding trade and economic engagement between the two sides.

Like in many other geographies, there has been concerns in Europe as well over Trump's policy of reciprocal tariffs.

The EU is keen to expand the trade basket with India and both sides are of the view that the proposed free trade pact will significantly enhance the economic engagement.

In financial year 2023-24, India's bilateral trade in goods with the EU stood at USD 135 billion with exports to EU at USD 76 billion and imports from EU recorded at USD 59 billion, making the bloc New Delhi's largest trading partner in goods.

Bilateral trade in services in 2023 stood at USD 53 billion comprising Indian exports worth USD 30 billion and imports worth USD 23 billion registering the highest ever trade in services.

EU's investments in India are valued at over USD 117 billion with around 6,000 European companies present in India.

India's investments in the EU are valued at around USD 40 billion.

Both sides are also keen to boost connectivity under the India-EU Connectivity Partnership launched in 2021.

The partnership also outlined various areas of cooperation on connectivity including in third countries.

On the sidelines of the G20 Leaders' Summit in New Delhi in September 2023, leaders of India, EU, France, Germany, Italy, Saudi Arabia, the UAE and the US announced an MoU committing to work together to develop a new India-Middle East-Europe Economic Corridor (IMEC).