India-EU Ties Poised for Major Upgrade with Trade, Defence Pacts

• India and the EU are set to upgrade their partnership with a focus on economic and security cooperation, including a potential free trade deal and a new defence pact.
• The upcoming India-EU summit will likely see these agreements take center stage, aiming to diversify military supply chains and enhance access to new capabilities.
• European Commission President Ursula von der Leyen highlighted that a trade deal could eliminate 4 billion euros in tariffs for exporters and that the EU is addressing issues like the Carbon Border Adjustment Mechanism (CBAM).
• Von der Leyen emphasized the critical need for India-EU cooperation to safeguard multilateralism, international law, and democracy amidst global strains, positioning the EU as a dependable partner.
• The new EU-India defense partnership is deemed transformative for shared security interests in a volatile global landscape, from Ukraine to the Indo-Pacific, with potential for significant boost to Indian exports like textiles and jewelry.

Why It Matters: India-EU relations are set for a significant boost with trade and defense deals, strengthening economic and security ties.