
European Commission President Ursula von der Leyen has renewed calls for a comprehensive trade agreement with India, signalling that the EU aims to finalise the deal before the end of the year.
Speaking after a recent discussion with India's Prime Minister Narendra Modi, von der Leyen framed the partnership as a strategic move to strengthen economic ties, diversify supply chains and bolster cooperation on technology, defence and the green transition.
She added that the EU must diversify its ties and look to trade deals with countries such as India, in the face of higher United States import tariffs.
"We want to make a deal with India this year," von der Leyen said at a conference with German business leaders in Berlin on Thursday, adding that Modi had assured her of his commitment to this goal in a phone call on Wednesday.
She added that the EU was also in talks over trade deals with "South Africa, Malaysia, the United Arab Emirates and others".
EU flags stronger partnership with South Africa with €4.7bn investment
'Obstacles to cooperation'
Speaking in Brussels on Wednesday at a meeting to unveil a new strategy to bolster EU-India ties, EU trade chief Maros Sefcovic also stressed that it was important for the bloc to strengthen its links with different countries – otherwise "this void [will be] filled by China and other actors".
He added that the EU is India's largest trading partner, with trade between the two economic giants up 90 percent over the past decade.
Meanwhile, US-India ties have been strained since US President Donald Trump raised tariffs on most Indian exports to 50 percent last month, in retaliation for New Delhi's continued purchasing of Russian oil.
Speaking alongside Sefcovic, Kaja Kallas, the EU's top diplomat, warned however that a push for closer European ties with India too could be hampered by this, and India's involvement in military drills with Moscow.
Is China's SCO a counterweight to NATO or just geopolitical theatre?
"Ultimately, our partnership is not only about trade, but also about defending the rules-based international order," Kallas said. "Participating in military exercises, purchases of oil, all these are obstacles to our cooperation when it comes to deepening the ties."
Alongside other Moscow allies including Iran, India took part in the Zapad-2025 military drills led by Russia and Belarus. Held from 12-16 September at the Mulino training ground in Nizhny Novgorod, Russia, 65 Indian personnel from the country's army, navy and air force were among the approximately 100,000 troops taking part.
News agency Reuters reported ballistic missiles flying over the Barents Sea, which borders NATO members Finland, Norway and Sweden, during the drills.
Trade between Russia and India – particularly in oil and fertiliser – has increased since the former's invasion of Ukraine in February 2022 saw it cut off from its buyers in Europe. India overtook China as the world's biggest importer of Russian oil in July this year.
Modi also put on a public show of warmth with Russia's Vladimir Putin and China's Xi Jinping at the Shanghai Cooperation Organisation summit, held from 31 August to 1 September in Tianjin.
(with newswires)