European Commission President Ursula von der Leyen’s visit to India, alongside 20 members of the EU College of Commissioners, is expected to accelerate negotiations on an India-EU free trade agreement (FTA). The discussions come in the wake of US President Donald Trump’s threat to impose a 25% tariff on European goods.

During her visit, von der Leyen will meet Prime Minister Narendra Modi and key ministers, including External Affairs Minister S. Jaishankar, Commerce Minister Piyush Goyal, and Finance Minister Nirmala Sitharaman. She emphasized India’s role as a “strategic ally” and a “trusted friend” for Europe, highlighting the importance of strengthening economic and technological collaboration.

India is expected to raise concerns over EU-imposed non-tariff barriers such as the Carbon Border Adjustment Mechanism (CBAM) and deforestation regulations, which could significantly impact Indian MSMEs. The EU, on the other hand, seeks greater market access for European businesses, particularly small and medium enterprises.

Trade talks will continue in Mumbai on Saturday between Commerce Minister Piyush Goyal and EU Trade Commissioner Maros Sefcovic to prepare for the 10th round of FTA negotiations in Brussels from March 10-14.

Trump’s recent comments on imposing tariffs on the EU have further underscored the need for India and the EU to strengthen their trade ties. The EU has vowed to respond “firmly and immediately” against any such tariffs.

Von der Leyen’s visit also includes discussions on defense cooperation, resilient supply chains, artificial intelligence, 6G, and semiconductors. India and the EU are working towards an agreement on information security, which could allow India to participate in EU-led defense initiatives.

The EU is India’s largest trading partner, with bilateral goods trade surpassing $137 billion in 2023-24. FTA negotiations between the two sides, first launched in 2007, were stalled in 2013 but resumed in 2022 following the India-EU Summit in May 2021.

With geopolitical shifts and economic challenges shaping global trade, the India-EU partnership is poised to play a critical role in driving economic security and growth for both sides.