Prime Minister Narendra Modi and European Union President Ursula von Der Leyen on Friday pledged to conclude a bilateral Free Trade Agreement (FTA) between the two sides by the end of the year.

”We have directed our teams to conclude a mutually beneficial bilateral FTA by the end of this year,” PM Modi announced at a press conference here after the talks between the two sides.

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He said the two sides have also decided to create a bold and ambitious roadmap for the India-EU partnership for the period beyond 2025. It will be launched during the next India-EU Summit.

The EU is India’s largest trading partner in goods. Talks between the two sides for an FTA, stalled for eight years resumed in 2021. Ms von der Leyen is leading a 27-member delegation on a two-day India visit, with both sides expected to speed up talks for the proposed FTA.

PM Modi noted that this is not just the European Commission’s first visit to India, but also its first such comprehensive engagement in any single country. ”Also, this is one of the first visits of the new Commission in its latest term. On this historic occasion, I warmly welcome the President of the European Commission and the College of Commissioners to India,” he said.

Describing the two-decade-long strategic partnership between India and the EU as natural and organic, he noted that its core is built on trust, a shared belief in democratic values, and a mutual commitment to prosperity and shared progress.

The PM said the two sides have prepared a blueprint for collaboration in the areas of Trade, Technology, Investment, Innovation, Green Growth, Security, Skilling and Mobility. To strengthen the investment framework, there has also been talk of moving forward on an Investment Protection and GI Agreement. ”In the field of Technology and Innovation, a trusted and secure value chain is our common priority,” Mr Modi said.

He said the two sides have also agreed on increasing cooperation in semiconductors, AI, high-performance computing and 6G. We have also decided to initiate a Space Dialogue.

The PM said the two sides have decided to conduct a Green Hydrogen Forum and Offshore Wind Energy Business Summit. Joint research shall be undertaken on EV Batteries, Marine plastics and Green hydrogen. ”We shall also take forward our Joint Plan on Sustainable Urban Development.”

In the field of connectivity, concrete steps will be taken, to take forward the India-Middle East- Europe Economic Corridor (IMEEC). ”I firmly believe that ‘IMEEC’ shall serve as an engine that drives global commerce, sustainable growth and prosperity in the days to come,” the PM added.

He said the growing cooperation between the two sides on issues related to Defence and Security is a symbol of mutual trust.” We will take forward our cooperation on Cyber Security, Maritime Security and Counter Terrorism,’ he added.

The PM said both sides agree on the importance of peace, security, stability and prosperity in the Indo-Pacific region. ”We welcome the decision of the EU to join the Indo-Pacific Oceans Initiative. We will work together on Triangular Development projects for sustainable and inclusive development in the Indo-Pacific region and Africa,” he added.

In her remarks, the EU President said this is the first visit together outside Europe for the whole College of Commissioners since it took office in December. ”This shows how much we value our partnership. We want to take it to new heights,” she added.

Ms von der Leyen said India is a like-minded friend. ”We are the two largest democracies in the world. And under your leadership, Prime Minister, it has been thriving. We are bound by shared convictions and values. From resilient supply chains to our shared interest in a free and open Indo-Pacific, we are working together. Today’s exchanges will set the path for the future of our relationship.