European Council backs new EU-India strategic agenda, FTA by year-end
The Belgium-based council, which sets the general political direction and priorities of the 27-member bloc, highlighted efforts on both sides to conclude an India-EU free trade agreement (FTA) by the end of the year.
European Commission President Ursula von der Leyen speaks with Narendra Modi before their meeting at the Hyderabad House in New Delhi on February 28, 2025. (Photo: Getty Images)
THE EUROPEAN Council on Monday approved conclusions on a ‘New Strategic EU-India Agenda’ earlier announced by the European Commission, welcoming the “strong impetus” it gives to relations between the European Union and India.
The Belgium-based council, which sets the general political direction and priorities of the 27-member bloc, highlighted efforts on both sides to conclude an India-EU free trade agreement (FTA) by the end of the year.
The council’s conclusions endorse the Joint Communication on the new agenda and its goal of deepening EU-India ties across prosperity and sustainability, technology and innovation, security and defence, connectivity, and global issues.
“The council welcomes in particular efforts to conclude a balanced, ambitious, mutually beneficial and economically meaningful free trade agreement, which the European Commission and the Indian government aim to finalise by the end of the year,” the council said in a statement.
“Such agreement must include enhanced market access, removal of trade barriers, and provisions on sustainable development,” it added.
The European Council noted that closer collaboration between the EU and India on security and defence matters, based on mutual trust and respect, is of particular importance given the current complex geopolitical situation.
“The council takes note of the intention to pursue work towards the establishment of a security and defence partnership, which could also facilitate defence industrial cooperation when appropriate,” it stated.
It said the EU will continue to engage with India on all aspects of “Russia’s war of aggression against the Ukraine”. The council also emphasised the shared capacity and responsibility of the EU and India to uphold multilateralism and the rules-based international order with the UN Charter at its core, as well as the multilateral trading system, particularly the World Trade Organisation (WTO).
“The promotion and protection of democratic values and norms, international law and human rights, including the rights of women and children, is an intrinsic part of the EU-India strategic agenda,” it said.
The council called on the European Commission to advance the articulation and implementation of the ‘New Strategic EU-India Agenda’ based on the priorities set out in the Joint Communication issued last month.
The move follows the visit of the EU College of Commissioners to India in February this year, which laid the foundation for a “new chapter in EU-India relations”.
During that visit – the first of its kind to the Indo-Pacific – both sides committed to elevating the Strategic Partnership to a higher level to boost shared prosperity, strengthen security, and tackle major global challenges together, according to the Joint Communication.
Debt interest payments rose to £9.7bn, up £3.8bn from a year earlier.
Borrowing for the first six months of the financial year hit £99.8bn.
Public sector debt now stands at around 95.3% of GDP.
UK GOVERNMENT borrowing in September reached £20.2bn, the highest September total in five years, the Office for National Statistics (ONS) said.
That was up £1.6bn from September last year. Higher debt interest payments offset increased receipts from taxes and national insurance, the ONS said.
Borrowing over the first six months of the financial year stood at £99.8bn, up £11.5bn from the same period last year.
September’s figure was slightly below some analysts’ expectations of £20.8bn but just above the Office for Budget Responsibility’s March projection of £20.1bn.
The government paid £9.7bn in debt interest in September, up £3.8bn from a year earlier. Public sector debt is estimated at 95.3% of GDP.
Capital Economics chief economist Paul Dales told the BBC’s Today programme the chancellor would "love tax receipts to be higher" but that it would depend on faster growth in the economy.
Capital Economics projects the government will need to raise £27bn in the Budget, with "higher taxes on households having to do the heavy lifting". Chief Secretary to the Treasury James Murray said the government would "never play fast and loose with the public finances" and aims to reduce borrowing to cut "costly debt interest, instead putting that money into our NHS, schools and police".
Shadow chancellor Mel Stride said borrowing was "soaring under this Labour government" and that "Rachel Reeves has lost control of the public finances and the next generation are being saddled with Labour's debts."
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