EU Council President Costa Seals Major Trade Accord with India at High-Level Summit

European Council President Antonio Costa arrived in India this Sunday, where he will attend the 16th EU-India summit scheduled for Tuesday as part of Republic Day celebrations. During his visit, Costa and European Commission President Ursula von der Leyen hope to seal a significant free trade agreement between Europe and New Delhi.

The summit aims to build on the existing strategic partnership between the two nations, with an emphasis on strengthening collaboration across key policy areas such as economy, technology, infrastructure, and employment. Bilateral trade in goods reached 120 billion euros ($139 billion) in 2024, marking a nearly 90 percent increase over the past decade according to European Union data.

However, negotiations are still ongoing due to several sticking points, including the EU’s carbon border tax on steel exports and discrepancies concerning safety and quality standards in pharmaceuticals and automotive sectors. India, which has traditionally relied heavily on Russian military hardware, is now diversifying its imports and fostering domestic manufacturing capabilities.

Despite these challenges, both Europe and India view this potential trade pact as a vital step towards bolstering their economies amid ongoing geopolitical pressures from the US and China. The EU-India strategic partnership holds significant importance for maintaining a stable international order in light of recent conflicts and economic disruptions.