India-EU trade deal would be largest of its kind, 2025 ‘historic opportunity’: Ursula von der Leyen

Without naming China, she said that both partners could help each other achieve the “common goal” of de-risking their economies in sensitive sectors such as batteries, pharmaceuticals, semiconductors, clean hydrogen, and defence. Strengthening economic security in these areas is crucial, especially as both the EU and India navigate “geo-economic” headwinds.

“We have all seen how countries are weaponising their sources of strength against each other—whether through natural resources, new technologies, or military and economic coercion. We have seen how supply chains and dependencies are exploited to gain influence or drive wedges between nations and regions. We have witnessed a more aggressive posture from major powers, and, of course, conflicts have destabilised entire regions,” von der Leyen said.

“We both stand to lose from a world defined by spheres of influence and isolationism, and we both stand to gain from cooperation and working together. We can offer each other distinctive alternatives and tools to strengthen our security and sovereignty in today’s world—an offer that cannot easily be replicated by others. This is why the European Union and India have the potential to become one of the defining partnerships of this century, and why this relationship will be a cornerstone of Europe’s foreign policy in the years and decades to come,” she added.

Notably, nine rounds of negotiations have taken place between India and the EU, with the tenth round scheduled for 10–14 March in Brussels. The ninth round covered a broad range of issues, including trade in goods and services, investment, government procurement, rules of origin, sanitary and phytosanitary (SPS) measures, and technical trade barriers, according to a statement from the Indian Ministry of Commerce last month.

Von der Leyen also announced that India and the EU are exploring the possibility of a future security and defence partnership, similar to the EU’s existing agreements with Japan and South Korea.

“This will enable us to step up efforts to counter shared threats, whether cross-border terrorism, maritime security challenges, cyber-attacks, or the emerging phenomenon of attacks on critical infrastructure. For instance, the recent collaboration on maritime security has been a positive step. I am also delighted by India’s interest in joining defence industrial projects under the EU’s Permanent Structured Cooperation. India is actively diversifying its military supply chains and seeking new capabilities, and I believe we can help each other achieve our security objectives,” she said.