India-The European (EU) summit is going to start next week. Important decisions like finalizing the Defense Partnership Agreement and creating a structure for the movement of Indian professionals are expected to be taken in this summit along with the announcement of conclusion of FTA. Diplomatic sources gave this information on Monday. European Council President Antonio Costa and European Commission President Ursula von der Leyen will be the chief guests of the Republic Day celebrations on January 26. India-EU summit will be organized the next day i.e. on 27 January.
EU military contingent to participate in India’s Republic Day parade
An EU military contingent will also take part in the Republic Day parade, consisting of the EU military staff flag and the flags of its naval operations ‘Operation Atalanta’ and ‘Espides’. Let us tell you that this will be the first military participation of the EU in a national celebration of any country outside Europe.
Many global issues will also be discussed
According to sources, global issues like Russia-Ukraine war, situation in West Asia and political developments in Venezuela will also be discussed in the India-EU summit to be held on January 27. EU leaders will be accompanied by a nearly 90-member delegation to India, which will include foreign and security policy chief Kaja Kalas, Trade Commissioner Maros Sefcovic and senior officials related to trade, energy and industrial policy. The European Union is India’s largest trading partner. In the financial year 2023-24, the merchandise trade between the two was worth $135 billion. The proposed FTA between the two sides is being considered as India’s biggest trade agreement in recent years.
Talks are still going on on some sensitive issues
At the summit, both sides will adopt a document formally announcing the conclusion of the ongoing negotiations on the FTA, after which the process of legal scrutiny and signing will begin. Under this, first the approval of the European Parliament and then the approval of the European Council will be required. Sources said that this agreement has become more important amid increasing uncertainties regarding America’s trade and tariff policies. India and the EU are also going to adopt a joint detailed strategic vision document for the period 2026-2030. However, talks are still on on some sensitive issues like Carbon Border Adjustment Mechanism (CBAM), agriculture, dairy and steel.
Opportunities for participation in EU’s ‘SAFE’ program will open for Indian companies.
An agreement has been reached on liquor and spirits, while duty-rate quota is being considered in the auto sector. The proposed ‘Security and Defense Partnership’ (SDP) between India and the European Union will enhance mutual cooperation in the defense sector and open opportunities for Indian companies to participate in the EU’s ‘SAFE’ (Security Action for Europe) programme. The ‘SAFE’ program is a financial provision of 150 billion euros of the European Union, which is designed to provide financial assistance to member states to step up defense preparedness. Additionally, an MoU is also likely to be agreed upon to initiate negotiations on Security of Information Agreement (SOIA) and to facilitate the movement of Indian professionals to Europe.
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