In era of conflicts and competition, you need trusted friends and India is one such friend: EU President

New Delhi, Feb 27 (PTI) The top leadership of India and the European Union (EU) is expected to infuse on Friday a fresh momentum in sealing an ambitious trade deal at the earliest as the 27-nation bloc is keen to re-energize the two-way economic ties amid its looming friction with the US on tariffs.

European Commission President Ursula von der Leyen, accompanied by the EU College of Commissioners or senior political leaders of the bloc, began a high-profile two-day visit to India on Thursday afternoon.

"In an era of conflicts and intense competition, you need trusted friends. For Europe, India is such a friend and a strategic ally," Von der Leyen said.

"I'll discuss with @narendramodi how to take our strategic partnership to the next level," she posted on X shortly after she was received at the Delhi airport by Union minister Anupriya Patel.

The talks between Modi and Von der Leyen are taking place against the backdrop of increasing tensions between EU and the Trump administration over tariff.

In sharp comments, American President Donald Trump on Wednesday said that the European Union was formed to "screw" the US even as he threatened to impose 25 per cent tariffs on imports from the European Union.

On its part, the EU said it will react firmly and immediately against unjustified barriers to free and fair trade.

Von der Leyen and Prime Minister Narendra Modi will hold extensive talks on Friday that is expected to focus on ways to firm up the long-awaited free trade agreement and boost cooperation in an array of areas including defence, technology and climate change.

The two sides are also expected to deliberate on the Russia-Ukraine conflict, the situation in the Indo-Pacific and developments in West Asia.

A joint statement is expected to be released following the Modi-Von der Leyen talks.

External Affairs Minister S Jaishankar met the European Commission president and discussed key bilateral issues.

"Appreciate her thoughts on reenergizing India's engagement with Europe," he said.

"The wide ranging participation of Indian Ministers and EU College of Commissioners during this visit stands testimony to the importance we place on deeper India-EU ties," he said on X.

It is a very important partnership for us and we are looking at some "concrete" forward movement in a number of critical areas including trade and defence, a senior official of the Ministry of External Affairs said.

The two leaders are expected to deliberate on the FTA as we need to produce a mutually-beneficial deal at the earliest, he said.

On the EU looking at pressing India to bring down tariffs on cars, wine and agricultural products, the official said India too has certain expectations from the bloc.

In their talks, Modi and Von der Leyen are also expected to explore ways to expand defence and security cooperation. The two sides are in the process of firming up a security of information agreement.

The pact is set to create a framework for deeper defence ties.

Earlier, Von der Leyen paid tributes to Mahatma Gandhi at Rajghat.

As part of expanding the defence ties, the EU is expected to soon appoint a liaison officer at India's Information Fusion Centre-Indian Ocean region (IFC-IOR).

The Indian Navy established the IFC-IOR in Gurugram in 2018 to keep track of shipping traffic as well as other critical developments in the region under a collaborative framework with like-minded countries.

The EU is keen to expand the trade basket with India and both sides are of the view that the proposed free trade pact will significantly enhance the economic engagement.

In the financial year 2023-24, India's bilateral trade in goods with the EU stood at USD 135 billion with exports to EU at USD 76 billion and imports from EU recorded at USD 59 billion, making the bloc New Delhi's largest trading partner in goods.

Bilateral trade in services in 2023 stood at USD 53 billion comprising Indian exports worth USD 30 billion and imports worth USD 23 billion registering the highest ever trade in services.

EU's investments in India are valued at over USD 117 billion with around 6,000 European companies present in India.

India's investments in the EU are valued at around USD 40 billion.

Both sides are also keen to boost connectivity under the India-EU Connectivity Partnership launched in 2021.

The partnership also outlined various areas of cooperation on connectivity including in third countries.

On the sidelines of the G20 Leaders' Summit in New Delhi in September 2023, leaders of India, EU, France, Germany, Italy, Saudi Arabia, the UAE and US announced an MoU committing to work together to develop a new India-Middle East-Europe Economic Corridor (IMEC). PTI MPB ZMN

Source: PTI