India and EU strengthen economic ties, eye resilient partnerships

January 20, 2025 Hot from the Oven Valli Sarvani

India and the European Union (EU) are taking decisive steps to strengthen their economic collaboration and reduce reliance on non-market economies.

At a high-level meeting in Brussels, India’s Commerce and Industry Minister Piyush Goyal met European Commissioner for Trade and Economic Security Maroš Šefčovič to outline a roadmap for mutual growth.

Besides, they also want to explore new avenues for strategic cooperation.

Both sides emphasized the need to diversify trade partnerships, with a focus on decreasing dependence on economies like China.

This shift aligns with growing concerns about China’s aggressive trade stance and its restrictions on exporting critical minerals and advanced technologies.

By fostering alternative partnerships, India and the EU aim to build more secure and sustainable supply chains.

A key highlight of the discussion was the commitment to fast-track negotiations on the Free Trade Agreement (FTA), which began in June 2022.

Minister Goyal expressed India’s intent to develop a commercially viable and balanced trade relationship with the EU. He stressed the importance of simplifying procedures, addressing tariff and non-tariff barriers, and ensuring cost competitiveness to promote fair trade practices.

In addition to the FTA, the leaders reviewed the progress of the India-EU Trade and Technology Council.

This collaboration focuses on areas like advanced technologies, critical raw materials, and resilient supply chains.

Both parties agreed to resolve legacy trade issues and strengthen cooperation in these strategic domains.

India’s approach to creating an equitable trade agenda aligns with the EU’s vision for building stronger partnerships in the face of shifting global economic dynamics.

By addressing mutual concerns and fostering innovation-driven growth, both sides are working toward a resilient economic framework.

This meeting underscores the shared vision of India and the EU to achieve sustainable growth and technological advancement.

With negotiations gaining momentum and strategic priorities clearly defined, the partnership is poised to create long-term benefits for both economies, reinforcing their roles as global trade leaders.

Image from Pxhere (Free for commercial use / CC0 Public Domain)

Image Published on January 19, 2017