India-EU strategic partnership holds key geopolitical weight: Costa

European Council President Antonio Costa praised the growing India-EU strategic partnership, highlighting its economic and geopolitical significance. A landmark summit saw the conclusion of a Free Trade Agreement and a Security and Defence Partnership.

European Council President Antonio Costa highlighted the growing strength of India-EU ties, saying the strategic partnership carries significant economic and geopolitical weight amid an increasingly volatile global environment.

Addressing a banquet held in his honour at Rashtrapati Bhavan on Tuesday, Costa said, "In an increasingly volatile world, our strategic partnership provides major economic and geopolitical weight. I am proud of the outcomes of today's summit. We have delivered tangible progress and set an example of cooperative leadership on global issues with a free trade agreement, Security and Defence Partnership and the Joint Strategic Agenda to 2030."

He said the relationship between India and the European Union was set to deepen as both sides move ahead with implementing the agreements reached. "Our relationship can only deepen as we implement all of these agreements, delivering concrete benefits to our citizens," Costa said.

Referring to his personal connection with India, Costa added, "As a person of Indian origin, I'm very proud of this moment. I represent how deep our people-to-people ties are and inspire all our citizens in Europe and India to build the bridges we need to strengthen our relationship."

His remarks followed a major milestone at the India-EU Summit, where both sides concluded negotiations on a long-pending Free Trade Agreement, signed a Security and Defence Partnership, and adopted a Joint Comprehensive Strategic Agenda for the next five years.

Landmark Free Trade Agreement Concluded

India and the European Union formally announced the FTA on Tuesday, under which 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 Prime Minister Narendra Modi, European Commission President Ursula von der Leyen and Costa.

"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 ends 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, saying it would "drive trade, investment and innovation while strengthening our strategic relationship," adding that it reflects a shared resolve to build a stable and future-ready economic partnership. 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."

Von der Leyen also said, "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."

Deepening Security and Defence Cooperation

Alongside trade, both sides agreed to deepen cooperation in security and defence. As part of the partnership, negotiations will begin on a Security of Information Agreement to enable the exchange of classified material. Collaboration will expand across maritime security, defence manufacturing and technology, cyber security and counterterrorism.

PM Modi said the partnership would reinforce commitment to a rules-based international order, strengthen Indo-Pacific cooperation and open avenues for defence firms to pursue co-development and co-production.

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 where security priorities align.

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 joint statement said, adding that both sides denounced in the strongest terms the Pahalgam attack of April 22, 2025, and the Red Fort incident of November 10, 2025.

Joint Strategic Agenda to 2030

Officials said the Joint Comprehensive Strategic Agenda focuses on prosperity and sustainability, technology and innovation, security and defence, connectivity and global challenges. The "forward-looking action plan" builds on more than two decades of partnership in an "increasingly complex geopolitical environment as trusted, predictable and like-minded partners".

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. In a post on X, Rashtrapati Bhavan said the President expressed confidence that the India-EU Free Trade Agreement would bring positive changes to people's lives and noted shared values of democracy, pluralism and open markets.

The summit was part of Costa and von der Leyen's State Visit from January 25 to 27 as Chief Guests for India's 77th Republic Day, accompanied by a high-level delegation including EU High Representative Kaja Kallas and Trade Commissioner Maros Sefcovic.

The agreements come amid fresh tariff pressures on both India and Europe from the Donald Trump-led US administration. (ANI)

(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)