EU, INDIA SEEK ECONOMIC SECURITY IN TURBULENT TIMES

By Shakir Husain

NEW DELHI, Jan 27 (Bernama) -- The European Union (EU) and India are seeking economic security in a turbulent global environment with their free trade agreement (FTA) and a defence cooperation deal.

The 27-member bloc and the world's most populous country unveiled their ambitious agenda by signing a string of agreements following the 16th India–EU leadership summit in New Delhi on Tuesday.

The two most crucial outcomes are the conclusion of an FTA and a security and defence partnership pact.

"Our summit sends a clear message to the world: at a time when the global order is being fundamentally reshaped, the European Union and India stand together as strategic and reliable partners," said EU Council President Antonio Costa, speaking alongside EU Commission ‌President Ursula von der Leyen and Indian Prime Minister Narendra Modi after their meeting.

"Trade is a crucial geopolitical stabiliser. And a fundamental source of economic growth. Trade agreements reinforce rules-based economic order and promote shared prosperity," Costa added.

India and the EU look at their FTA as creating a market of two billion people and boosting their annual trade substantially from US$136.5 billion in goods and US$83.1 billion in services now.

India and the EU together account for 25 per cent of global GDP and one-third of world trade, and this FTA will create "unprecedented trade and investment opportunities", the Indian Commerce Ministry said.

The Indian prime minister in his remarks called the trade deal "a blueprint for shared prosperity" and said the economic and security partnership with the EU reinforces bilateral cooperation in various areas in a "complex global environment."

India also hopes the EU, which hosts 800,000 Indian nationals, will open up new opportunities for its workers and professionals.

"We have delivered the mother of all deals," von der Leyen said in her remarks, adding that it will cut up to four billion euros (US$4.7 billion) in annual tariffs for exporters of all sizes.

She said it will "build on the natural complementarity of our economies" at a time when global "trade is increasingly weaponised."

India and the EU also see their new security and defence partnership bringing them strategically closer.

"We will deepen our cooperation on maritime security. For example, joint naval exercises to tackle piracy. And we will step up our work on countering cyber and hybrid threats, which are getting more sophisticated by the day," von der Leyen said.

"Our partnership includes a dedicated dialogue on space security, from situational awareness to secure connectivity and stronger cooperation on counterterrorism," she said.

With the Russia-Ukraine conflict being seen as a major security challenge for Europe, the EU Council chief also sought India's help in resolving it.

"Our summit reaffirmed our commitment to supporting efforts towards a comprehensive, just and lasting peace in Ukraine. One that fully respects Ukraine's independence, sovereignty and territorial integrity," he said.

Addressing Modi, Costa said that "we can count on you to help create the conditions for peace, through dialogue and diplomacy."

-- BERNAMA