India, EU Look to Strengthen Trading Ties

India and the European Union hope to strengthen ties with each other with the launch of a joint trade and technology council, according to an announcement from the European Commission Monday (April 25).

“Both sides agreed that rapid changes in the geopolitical environment highlight the need for joint in-depth strategic engagement,” European Commission President Ursula von der Leyen said in a statement.

As Bloomberg reported, citing someone familiar with the discussions, the agreement is part of a larger plan by the EU to accelerate trade talks with India in hopes of giving the country an alternative to trading with Russia.

On Monday, Von der Leyen and Indian Prime Minister Narendra Modi reviewed the progress in their partnership, including relaunching negotiations on a free-trade agreement and investment accord, the Indian government said.

Accounting for $67.3 billion in trade, the EU is one of India’s largest trade partners. Both Europe and the U.S. are hoping to forge stronger ties with the country, which is the largest buyer of Russian weapons in the world. India argues it needs those weapons to fend off aggression from bordering countries like China and Pakistan.

The Russia-Ukraine war has had an impact on Asia, which is trying to cope with price increases for energy, grain and fertilizer, von der Leyen told the Raisina Dialogue, an annual geopolitical conference in New Delhi.

“The outcome of the war will not only determine the future of Europe, but also deeply affect the Indo-Pacific region and the rest of the world,” she said.

As PYMNTS reported last week, the ongoing war has led to a situation where sanctions and interruptions to the supply chain have made important commodities rare, priming an environment for corruption.

Read more: Experts: Supply Chain Scarcity Sets Stage for Corruption

Sanctions against Russia have caused short-term compliance issues for companies and the potential for potential long-term challenges. Major commodities such as oil, wheat, iron and fertilizer are in short supply, either because of sanctions or because the war has held back supplies from Russia and Ukraine.