European Commission President Ursula von der Leyen on Monday said that a “successful India” makes the world more “stable, prosperous and secure”, a statement that came ahead of the “historic” trade agreement between New Delhi and the 27-nation bloc.
von der Leyen, who is on three-day visit to India, attended India’s Republic Day celebrations as a chief guest and said it was an “honour of a lifetime”. von der Leyen and European Council President Antonio Costa were the chief guests as India marked its 77th Republic Day.
“A successful India makes the world more stable, prosperous and secure. And we all benefit,” von der Leyen posted on X.
Von der Leyen is in India for summit talks with Prime Minister Narendra Modi, which are scheduled for Tuesday.
India-EU Trade Deal
At the India-EU summit, the two sides are set to announce the conclusion of negotiations for the much-awaited free trade deal.
Days before her trip to New Delhi, von der Leyen said that India and the European Union were on the cusp of a “historic trade agreement” that would create a market comprising two billion people accounting for almost a quarter of the global GDP.
“I will travel to India. There is still work to do. But we are on the cusp of a historic trade agreement. Some call it the mother of all deals. One that would create a market of 2 billion people, accounting for almost a quarter of global GDP,” she said in an address at the World Economic Forum in Davos last Tuesday.
“And, crucially, that would provide a first-mover advantage for Europe with one of the world’s fastest-growing and most dynamic continents. Europe wants to do business with the growth centres of today and the economic powerhouses of this century,” she said.
The European Union is India’s biggest trade partner, with bilateral trade in goods recording USD 135 billion in the financial year 2023-24.
The EU and India had first launched negotiations for the free trade agreement in 2007, but the talks were suspended in 2013. The negotiations were relaunched in 2022.
India reportedly plans to slash tariffs on cars imported from the European Union to 40% from as high as 110%.
The Indian government has agreed to immediately reduce the tax on a limited number of cars from the 27-nation bloc with an import price of more than 15,000 euros ($17,739), Reuters reported.
This will be further lowered to 10% over time, easing access to the Indian market for European automakers like Volkswagen, Mercedes-Benz, and BMW.
Source: NDTV
--Agencies
