European Commission President Ursula von der Leyen has declared that political ties between Europe and India have never been stronger, emphasising a growing strategic convergence.

This statement came during a banquet hosted in her honour at Rashtrapati Bhavan in New Delhi on Tuesday, following the conclusion of a landmark Free Trade Agreement (FTA) and the launch of a Security and Defence Partnership.

Von der Leyen highlighted the global influence of the partnership, noting, "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 stressed the potential of combining Europe's and India's resources, describing the moment as decisive with the FTA in place, adding, "Just imagine what we can achieve if we combine Europe's and India's resources. This is precisely why we are here today."

The agreements, she said, send a clear message amid global uncertainty: "In a time when the world is becoming more fractured and fractious, India and Europe are choosing dialogue, collaboration, and cooperation."

Beyond economics, von der Leyen pointed to strategic advancements, stating that the new security and defence partnership aims to protect interests on both sides and ensure stability in volatile times. She envisioned scaling greater heights together, declaring, "With these agreements, we can scale even greater heights. Together we can build a new golden road between our continents."

The FTA, hailed as the "mother of all deals," was formally announced alongside a Security and Defence Partnership and 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 at a joint press briefing in New Delhi. PM Modi described India-EU cooperation as a stabilising force in a turbulent global order.

Under the FTA, the EU will remove tariffs on 99.5 per cent of Indian exports, with most duties dropping to zero upon implementation, while India will offer 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 leaders' presence.

Von der Leyen called it a market of two billion people, a "tale of two giants" – the world's second- and fourth-largest economies – opting for win-win partnership.

Negotiations, which began in 2007, conclude with bilateral trade already surpassing USD 136 billion; the pact is expected to save around four billion euros annually in duties.

India agreed to reduce or eliminate tariffs on nearly 97 per cent of European goods.

PM Modi termed it a "significant milestone" on X, deepening economic ties and creating opportunities, while urging businesses to advance bilateral trade: "The ball is in your court."

He further noted, "Today, India has concluded the biggest Free Trade Agreement in its history... This is not just a trade agreement, it is a blueprint for shared prosperity."

Von der Leyen echoed this on X: "Europe and India are making history today. We have concluded the mother of all deals."

Security and defence cooperation will deepen, including negotiations on a Security of Information Agreement, expanding into maritime security, defence manufacturing, technology, cyber security, and counterterrorism.

A joint statement outlined plans for an industry-driven Defence Industry Forum and India's potential participation in EU defence initiatives. Leaders condemned terrorism and violent extremism, calling for comprehensive international efforts in line with global law.

Foreign Secretary Vikram Misri described the outcomes as "deeply strategic," centring defence cooperation, economic engagement, maritime security, and legal pathways for Indian workers, with a vision to 2030.

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

It includes moves towards an Investment Protection Agreement and enhanced connectivity via the India-Middle East-Europe Economic Corridor, spanning infrastructure, maritime, rail, digital, and energy projects, plus the EU-Africa-India Digital Corridor through the Blue Raman submarine cable.

President Droupadi Murmu hosted Costa and von der Leyen at Rashtrapati Bhavan, expressing confidence that the FTA would improve lives, underpinned by shared values of democracy, pluralism, and open markets.

The leaders' state visit from 25 to 27 January served as Chief Guests for India's 77th Republic Day, with a high-level delegation. Specific concessions include India revoking tariffs on all EU chemical products and abolishing duties on 90 per cent of optical, medical, and surgical equipment.

The agreement arrives amid tariff pressures from the Donald Trump-led US administration on both India and Europe.

Based On ANI Report