Prime Minister Narendra Modi of India announced on Friday that India and the European Union (EU) are on track to sign a free trade agreement by the end of the year. Modi’s statement came during a visit by EU Commission President Ursula von der Leyen, who arrived in India on Thursday with the aim of strengthening economic ties.

The EU has been actively working towards a free trade agreement with India, in anticipation of potential tariffs from the US. Updates to trade negotiations between India and the EU have been slow due to disputes over intellectual property protections and market access for certain goods.

Additionally, von der Leyen spoke about the need for India and the EU to ‘reimagine’ their partnership amid increasing global competition and tensions. She also expressed the EU’s interest in a defense and security partnership with India, similar to those already established with Japan and South Korea. Furthermore, the EU and India could work together to diversify supply chains, as the EU aims to reduce its reliance on China.

Source: https://www.dw.com/en/india-eu-to-strike-trade-deal-by-end-of-2025-modi/a-71779593?maca=en-rss-en-all-1573-rdf