'Political Ties Between Europe and India Have Never Been Stronger': EU Commission President Ursula Von Der Leyen

New Delhi: European Commission President Ursula von der Leyen highlighted that political ties between Europe and India have never been stronger, pointing to growing strategic convergence following the conclusion of a landmark Free Trade Agreement (FTA) and the launch of a Security and Defence Partnership.

Addressing a banquet held in her honour at Rashtrapati Bhavan on Tuesday, von der Leyen said, "The political ties between Europe and India have never been stronger. Our scale gives us global influence, whether in trade, security or international relations. This is why India has risen to the top of global politics, a development Europe welcomes".

She underlined the importance of combining strengths, adding, "Just imagine what we can achieve if we combine Europe's and India's resources. This is precisely why we are here today. It is a decisive moment in our partnership with our free trade agreement. And this is only the beginning".

Von der Leyen said the agreements send a clear message amid global uncertainty.

"We are sending a strong signal to the world. In a time when the world is becoming more fractured and fractious, India and Europe are choosing dialogue, collaboration, and cooperation", she said.

Emphasising that the partnership extends beyond trade, she added, "Today is about more than economics. Europe and India are also stepping up strategically. This is why today we launched our security and defence partnership to protect Indian interests and European interests and to bring stability and reassurance in volatile times, so that our people can feel safe and our businesses can trade with confidence and with certainty".

"With these agreements, we can scale even greater heights. Together we can build a new golden road between our continents and pave the way to an even brighter future for India and for Europe", von der Leyen said.

Her remarks came as India and the European Union formally announced the conclusion of their long-awaited Free Trade Agreement, described by leaders as the "mother of all deals", alongside the signing of a Security and Defence Partnership and adoption of a Joint Comprehensive Strategic Agenda for the next five years.

Prime Minister Narendra Modi, von der Leyen and European Council President Antonio Luis Santos da Costa unveiled the pact during a joint press briefing in New Delhi, where PM Modi said India-EU cooperation would help stabilise a turbulent global order.

Under the agreement, the EU will remove tariffs on 99.5 per cent of Indian exports, with most duties dropping to zero once the pact comes into force, while India will provide tariff concessions on 97.5 per cent of traded value. Commerce Minister Piyush Goyal and European Commissioner for Trade and Economic Security Maros Sefcovic signed the joint announcement in the presence of the leaders.

"We have delivered the mother of all deals", von der Leyen said. "We are creating a market of 2 billion people. This is a tale of two giants -- the world's second- and fourth-largest economies. Two giants who choose partnership in a true win-win fashion. A strong message that cooperation is the best answer to global challenges."

The agreement concludes negotiations that began in 2007. With bilateral trade already exceeding USD 136 billion, the EU said the pact would save around 4 billion euros annually in duties, as India agreed to reduce or eliminate tariffs on nearly 97 per cent of European goods.

PM Modi welcomed the pact in a post on X, calling it a "significant milestone" and saying it would deepen economic ties, create opportunities for people on both sides and strengthen the partnership for a prosperous future. He later described India-EU ties as a global "double engine of growth" and urged businesses to advance bilateral trade, saying, "The ball is in your court."

Speaking on Tuesday, PM Modi also said, "Today, India has concluded the biggest Free Trade Agreement in its history. On 27th January, India signed this FTA with 27 European nations...This will boost investment, form new innovation partnerships and strengthen supply chains at the global level...This is not just a trade agreement, it is a blueprint for shared prosperity".

Von der Leyen wrote on X, "Europe and India are making history today. We have concluded the mother of all deals. We have created a free trade zone of two billion people, with both sides set to benefit. This is only the beginning. We will grow our strategic relationship to be even stronger".

Alongside trade, both sides agreed to deepen cooperation in security and defence, including negotiations on a Security of Information Agreement. Collaboration will expand across maritime security, defence manufacturing and technology, cyber security and counterterrorism.

According to a joint statement, India and the EU are also considering establishing an industry-driven Defence Industry Forum and exploring India's participation in relevant EU defence initiatives.

The leaders strongly condemned terrorism and violent extremism in all forms. "They called for decisive and concerted international efforts to combat terrorism in a comprehensive and sustained manner and in accordance with international law," the statement said.

Foreign Secretary Vikram Misri described the outcomes as "deeply strategic in nature", saying the agreement places defence cooperation and economic engagement at its core, enhances maritime security and creates legal pathways for the Indian workforce, reflecting a forward-looking vision towards 2030.

The Joint Comprehensive Strategic Agenda focuses on prosperity and sustainability, technology and innovation, security and defence, connectivity and global challenges.

Under the agenda, both sides will move towards concluding an Investment Protection Agreement and strengthening connectivity under the India-Middle East-Europe Economic Corridor, including infrastructure, maritime, rail, digital and energy projects, as well as the EU-Africa-India Digital Corridor through the Blue Raman submarine cable system.

Earlier, President Droupadi Murmu received Costa and von der Leyen at Rashtrapati Bhavan and hosted a banquet in their honour, expressing confidence that the India-EU Free Trade Agreement would bring positive changes to people's lives and noting shared values of democracy, pluralism and open markets.

Costa and von der Leyen paid a State Visit from January 25 to 27 as Chief Guests for India's 77th Republic Day, accompanied by a high-level delegation.

As part of the agreement, India will revoke tariffs on all EU chemical products, while duties will be abolished on 90 per cent of optical, medical and surgical equipment.
The agreement comes amid fresh tariff pressures on both India and Europe from the Donald Trump-led US administration.

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