Janice R. Andrews
The European Union is pressing India to lower its substantial tariffs on European imports including automobiles and wine as part of a broader strategy to enhance trade relations and reduce dependency on China. This push comes as European Commission President Ursula von der Leyen prepares for meetings with Indian Prime Minister Narendra Modi and Trade Minister Piyush Goyal during her upcoming New Delhi visit.
According to an anonymous EU official, India’s market remains largely inaccessible to key European sectors. The EU is seeking reduced tariffs and expanded market access while showing flexibility on agricultural issues to accelerate free trade agreement (FTA) negotiations.
Von der Leyen’s two-day visit beginning Thursday takes place amid heightened geopolitical tensions. Discussions will center on enhancing economic and security collaboration, with both parties identifying areas for deeper strategic partnership. Trade talks are scheduled to continue in Brussels from March 10-14.
The EU’s tariff reduction request is part of its “de-risking” strategy aimed at diversifying supply chains away from China. The bloc views India as an essential partner in addressing global security issues, including cybersecurity and Indo-Pacific maritime concerns.
However, trade experts caution that immediate significant progress is unlikely. According to Ajay Srivastava of the Global Trade Initiative, while both sides share concerns about China, their priorities differ—India focuses on border disputes while the EU concentrates on the Ukraine-Russia conflict and NATO matters.
Despite these challenges, the EU remains India’s top trading partner, with bilateral trade reaching $126 billion in 2024—a nearly 90% increase over the past decade.
