Von der Leyen Hails India-EU Free Trade Agreement as Strategic Leap, Reveals New Industrial 'Blue Valleys' Initiative
European Commission President Ursula von der Leyen on Saturday described the newly concluded India-European Union Free Trade Agreement (FTA) as a “strategic choice” that will create one of the world’s largest trading zones, combining two economic blocs representing 2 billion people and 25% of global GDP.
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| Image Source: Indian PM NaMo |
The FTA, which will lower tariffs, simplify customs processes, and provide stable market access, comes after nearly two decades of negotiations and is expected to unlock significant economic opportunities for both sides.
“European companies already employ more than 3 million people in India. In ten years, trade in goods between Europe and India has nearly doubled to €120 billion.
Now this agreement will unleash even more potential,” von der Leyen said, emphasizing that the deal will also pave the way for greater long-term investment.
In addition to finalizing the FTA, von der Leyen announced new plans to deepen industrial cooperation through the launch of “Blue Valleys,” a joint EU-India initiative aimed at enhancing collaboration in strategic sectors such as clean technologies, advanced machinery, and semiconductors.
These dedicated industrial zones will bring together regulators, businesses, and investors to remove bottlenecks and build resilient cross-border supply chains. A pilot version of the scheme was previously tested in Assam.
The EU chief also cited the recently signed Semiconductor Agreement and the upcoming Wind Business Summit as part of a broader effort to strengthen strategic industrial ties.
“The clean transition has huge dividends for those who lead it,” she said, adding that Europe and India are well positioned to lead in green technologies.
Von der Leyen further called for completing negotiations on Investment Protection and Geographical Indications to provide a secure legal framework for bilateral investments.
She pointed to major recent investments such as EDF Renewables’ €1.1 billion solar energy project and the expansion of European retailers like IKEA into India, as signs of deepening commercial ties.
The speech comes just hours after the formal conclusion of the India-EU Free Trade Agreement was announced at the 16th India-EU Summit.
The FTA is part of a broader push by both sides to de-risk supply chains, expand strategic autonomy, and position their economies as reliable partners amid growing global uncertainty.
Von der Leyen ended her address with a nod to Indian wisdom, stating “Wisdom grows through listening,” she said. “This is what we did here today, and what we should do in future.”