BRUSSELS, Jan 24: India and Europe hope to strike the "mother of all deals" when EU chiefs meet Prime Minister Narendra Modi in New Delhi next week, as the two economic behemoths seek to forge closer ties.
Facing challenges from China and the United States, India and the European Union have been negotiating a massive free trade pact -- and talks, first launched about two decades ago, are nearing the finishing line.
"We are on the cusp of a historic trade agreement," European Commission President Ursula von der Leyen said this week.
Von der Leyen and European Council president Antonio Costa will attend Republic Day celebrations Monday before an EU-India summit Tuesday, where they hope to shake hands on the accord.
Securing a pact described by India's Commerce Minister Piyush Goyal as "the mother of all deals", would be a major win for Brussels and New Delhi as both seek to open up new markets in the face of US tariffs and Chinese export controls.
But officials have been eager to stress there is more to it than commerce.
"The EU and India are moving closer together at the time when the rules-based international order is under unprecedented pressure through wars, coercion and economic fragmentation," the EU's top diplomat, Kaja Kallas said Wednesday.
Russia's invasion of Ukraine and US President Donald Trump's punitive tariffs have brought momentum to the relationship between India and the EU, said Praveen Donthi, of the International Crisis Group think tank.
"The EU eyes the Indian market and aims to steer a rising power like India away from Russia, while India seeks to diversify its partnerships, doubling down on its strategy of multi-alignment at a time when its relations with the US have taken a downward turn," he said.
The summit will offer Brussels the chance to turn the page after a bruising transatlantic crisis over Greenland -- now seemingly defused.
Together the EU and India account for about a quarter of the world's population and GDP.
Bilateral trade in goods reached 120 billion euros ($139 billion) in 2024, an increase of nearly 90 percent over the past decade, according to EU figures, with a further 60 billion euros ($69 billion) in trade in services.
Meanwhile, European Commission President Ursula von der Leyen on Saturday arrived in India on a State Visit during which she, along with European Council President Antonio Luis Santos da Costa, will also be attending India's 77th Republic Day celebrations as a Chief Guest, marking a significant milestone in India-EU relations.
The European Union (EU) chief was received by Minister of State for Commerce and Industry and Electronics and Information Technology Jitin Prasada upon her arrival.
"Charting the next phase of the India-EU Strategic partnership. A warm welcome to the President of the European Commission, Ursula von der Leyen, on her State Visit to India. Received by Minister of State for Commerce and Industry, and Electronics and Information Technology, Jitin Prasada. As the world's two largest democracies, India and the EU share a partnership rooted in mutual trust and shared values," the Ministry of External Affairs (MEA) posted on X. "AFP, Z NEWS
