EU Chief Ursula von der Leyen in India: Key Talks on Trade, Ukraine War, and Economic Partnerships
Key Focus Areas: Russia-Ukraine War, Free Trade Agreement, and Economic Cooperation
New Delhi, February 26, 2025 – European Commission President Ursula von der Leyen is set to embark on a two-day visit to India from February 27 to 28, marking her first overseas trip in her second term. The visit is expected to play a pivotal role in reinforcing India-EU relations and preparing the groundwork for the upcoming EU-India Summit later this year.
Russia-Ukraine Conflict: A Central Agenda
One of the major topics of discussion between Prime Minister Narendra Modi and von der Leyen will be the ongoing Russia-Ukraine war. The European Union has imposed a series of sanctions on Russia, and their effectiveness will be a key point of deliberation.
A senior EU official, speaking anonymously, stated, “Wherever we go, we raise the issue of the war in Ukraine. We see India as a key partner and a sponsor of peace. Discussions will include the effectiveness of our sanctions on Russia.”
The EU has been actively reducing its dependency on Russian energy, while India has increased economic engagements with Moscow. In the last financial year, India imported over $50 billion worth of Russian oil. Although Brussels does not consider India’s refining of Russian oil a violation of sanctions, recent EU measures have included restrictions on Indian entities with links to Russia.
Free Trade Agreement and Economic Cooperation
Trade relations between India and the EU remain a crucial part of the discussions. Commerce and Industry Minister Piyush Goyal is scheduled to meet European Commissioner for Trade Maroš Šefčovič in Mumbai to advance negotiations on the Free Trade Agreement (FTA), which has been under discussion since July 2022.
Key sticking points include EU demands for lower tariffs on European cars, wines, and spirits, while India has raised concerns over non-tariff barriers and procurement commitments. Additionally, India remains apprehensive about the Carbon Border Adjustment Mechanism (CBAM) and EU Deforestation Rules, which could impact Indian exports.
While no major breakthrough is expected during this visit, the 10th round of FTA negotiations is anticipated soon. A senior EU official remarked, “India is a key partner in diversifying supply chains and reducing dependence on China. We are exploring investment opportunities and share concerns over China’s growing assertiveness.”
India-Middle East-Europe Economic Corridor (IMEC) in Focus
Von der Leyen’s visit will also reinforce the EU’s commitment to the India-Middle East-Europe Economic Corridor (IMEC), a strategic initiative announced during the G20 Summit in New Delhi in 2023. IMEC aims to enhance connectivity between India and Europe via West Asia, offering a viable alternative to current trade routes amid shifting global supply chains.
Trade and Technology Council (TTC) Ministerial Meeting
The visit will also coincide with the second ministerial meeting of the Trade and Technology Council (TTC), where discussions will revolve around trade barriers, technology partnerships, and regulatory policies affecting European businesses in India. The first TTC meeting was held in May 2023, following its establishment in 2022.
A senior EU official emphasized, “While there are ongoing issues, India remains a crucial partner in technological collaboration and investment diversification.”
Political Significance of the Visit
Though no major agreements are expected to be finalized during the visit, it underscores the growing importance of the India-EU partnership. The presence of a high-level delegation comprising 21 European commissioners highlights India’s increasing relevance in global economic and security frameworks.
With discussions spanning geopolitical conflicts, trade relations, and technological cooperation, von der Leyen’s visit is poised to strengthen India-EU ties and pave the way for deeper engagement in the months ahead.
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