Modi and Nehammer Advocate for Swift India-EU Free Trade Agreement Talks

India and Austria have emphasised the importance of expediting the long-pending EU Free Trade Agreement. They highlighted that India and the European Union possess the largest and most dynamic free-market space globally. Austrian Chancellor Karl Nehammer and Prime Minister Narendra Modi discussed the India-EU relationship, noting that deeper ties would be mutually beneficial and positively impact the world.

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During a media briefing, Foreign Secretary Vinay Kwatra mentioned that the EU Free Trade Agreement has been under negotiation for over 23 years. He stated, "Prime Minister Modi and the Austrian Chancellor agreed that this was an awfully long time for discussions to have been dragged on and they agreed that this is something that both India and they should try to try in terms of taking it forward at a quicker pace."

India-EU Trade Dynamics

The EU stands as India's third-largest trading partner, with trade in goods amounting to 88 billion Euros in 2021, representing 10.8 per cent of India's total trade. Conversely, India is the EU’s 10th largest trading partner, accounting for 2.1 per cent of the EU's total trade in goods. In 2020, trade in services between the EU and India reached 30.4 billion Euros, according to data from the EU website.

Modi's visit to Austria marked a significant milestone as it was the first visit by an Indian Prime Minister to Austria in 41 years. This visit coincided with the 75th anniversary of diplomatic relations between India and Austria. The leaders reaffirmed their strong support for ongoing India-EU trade and investment negotiations and stressed the need for early implementation of the EU-India Connectivity Partnership.

Strengthening Bilateral Relations

The joint statement issued at the end of Modi's official state visit underscored that both leaders are committed to supporting initiatives aimed at bringing India and the EU closer. "Chancellor Nehammer and Prime Minister Modi agreed to support various initiatives to bring India and the EU closer. In this context, they reaffirmed their strong support for the ongoing India-EU trade and investment negotiations and the early implementation of the EU-India Connectivity Partnership," it said.

Kwatra also highlighted that both leaders discussed opportunities in economic and political spheres within the India-EU partnership framework. He noted how India's relationship with Austria fits synergistically into the broader India-EU relationship.

The discussions between Modi and Nehammer reflect a shared vision for enhancing cooperation between India and Europe. They believe that stronger ties will not only benefit both regions but also contribute positively on a global scale.

The meeting concluded with a mutual agreement to expedite efforts towards finalising the EU Free Trade Agreement, recognising its potential to boost economic growth and development for all parties involved.