India and the European Union have set an ambitious goal to conclude their long-awaited free trade agreement (FTA) by the end of 2025. This decision was announced following a landmark visit by European Commission President Ursula von der Leyen to India, where she met with Prime Minister Narendra Modi.

The leaders emphasised the importance of finalizing the agreement, which has been in negotiations for over 17 years, with talks resuming in 2021 after an eight-year pause.

The FTA is expected to be one of the largest trade agreements globally, significantly boosting economic ties between India and the EU, which is India's largest trading partner in goods, with bilateral trade valued at $137.5 billion in the fiscal year 2023-24.

The agreement aims to address various issues, including tariff reductions, market access, and regulatory frameworks. The EU has requested India to lower tariffs on imported cars, whiskey, and wine, while India seeks greater access for its pharmaceuticals and chemicals in the EU market. India also wants reduced tariffs on its textile, garment, and leather exports.

Additionally, both sides are working on agreements related to investment protection and geographical indications.

The strategic partnership between India and the EU is expanding beyond trade to include areas such as defence, security, and critical technology. The leaders also discussed advancing the India-Middle East-Europe Economic Corridor (IMEEC), which is envisioned as a major engine for global commerce and sustainable growth.

The visit by President von der Leyen was seen as unprecedented, underscoring the EU's commitment to elevating its relationship with India to new heights.

ANI