PM Modi invites EU firms to invest, boost economy
EU-INDIA VIRTUAL SUMMIT The two sides agree to scale up defence and security ties, including the launch of a maritime security dialogue, crisis management and naval cooperation
NEWDELHI:INDIA and the European Union (EU) agreed on Wednesday to start a high-level dialogue on finalising trade and investment agreements even as Prime Minister Narendra Modi invited European businesses to invest in the country to hasten a post-covid-19 economic recovery.
During a virtual summit, the leadership of the two sides agreed to scale up defence and security ties, including the launch of a new maritime security dialogue, consultations on crisis management and deeper cooperation between the Indian Navy and the European Union Naval Force Atalanta, the EU’S counter-piracy military operation in the western Indian Ocean.
With India’s Central Bureau of Investigation (CBI) and Europol launching negotiations to combat organised crime and terrorism, the two sides decided to intensify cooperation to tackle terror and its financing, radicalisation and abuse of the internet for such activities. Indian officials said Pakistan’s support for terrorism aimed at India and other countries in the region figured in the discussions.
While the joint statement and other documents adopted at the meeting, such as the strategic partnership roadmap till 2025, made no direct mention of New Delhi’s standoff with Beijing, many measures agreed on by India and the EU to strengthen multilateralism and protect a rules-based order appeared to be aimed at countering the rise of an assertive China.
Modi emphasised the priority India attaches to foreign direct investment (FDI) and efforts to liberalise regulations and improve the ease of doing business, secretary (west) Vikas Swarup of the external affairs ministry told a news briefing.
“He invited European businesses to utilise the opportunities in India and conveyed that Atmabirbhar Bharat {Self-reliant India} is aimed at integrating domestic production with global supply chains,” he said.
Though the two sides launched negotiations on a bilateral trade and investment agreement (BTIA) in 2007, talks stalled in 2013 over differences on market access and movement of professionals.
Swarup said the two sides have now agreed to launch a high-level dialogue between India’s commerce minister and the EU trade commissioner to foster progress on “balanced, ambitious and mutually beneficial” trade and investment agreements, address trade irritants and discuss supply chain linkages.
Though no time-frame was set for concluding these agreements, a meeting of the dialogue mechanism will be held “as soon as possible, in the next few months”, he added. Modi, who co-chaired the summit with European Council President Charles Michel and European Commission President Ursula von der Leyen, said the India-eu partnership can play a key role in post-covid-19 economic reconstruction and human-centric globalisation.
The two sides, he said, are natural partners because of shared values such as democracy, respect for international institutions and multilateralism, at a time when there are “different types of pressures on the rulesbased international order”.
“Like you, I am committed to deepen relations between India and the EU. For this, we must adopt a long-term strategic perspective and an action-oriented agenda should be implemented within a stipulated time-frame,” Modi said.
The European leadership noted that while the 27-member bloc is India’s largest trade and investment partner, India represented only 2% of EU’S total trade. India’s annual trade in goods and services with the EU is worth $140 billion, and European firms have invested more than $91 billion in the country. Von der Leyen said trade and investment agreements will have to ensure market access and avoid barriers. The EU side raised with Modi the need to make tough choices such as phasing out coal while discussing cooperation on climate change. It offered to share its experience in data protection legislation as convergence of standards will facilitate data flows, she said.
Michel, who described India as an “indispensible partner” at a news conference, said India’s recent election as a non-permanent member of the UN Security Council for andtothe G20 presidency in 2022 will allow the two sides to work together on multilateralism and keeping the global trading system open.
Officials of both sides acknowledged that the India-china border standoff figured in the discussions, and that Modi shared his views on the current situation in the border areas. Without mentioning China, both Michel and von der Leyen assured India of EU’S support. Von der Leyen said: “Our main message has been that the EU stands by India as friends and partners.”
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