EU Chief Ursula Von Der Leyen Greets Modi, Pushes Trade Talks And Climate Cooperation
In a major signal to exporters, Brussels had on Wednesday announced that India's Carbon Credit Trading Scheme will be integrated into the EU's Carbon Border Adjustment Mechanism.
European Commission President Ursula von der Leyen on Wednesday extended birthday greetings to Prime Minister Narendra Modi, using the occasion to spotlight deepening ties between the European Union and India.
"On the day we launched our new EU-India strategy, I had the pleasure of wishing @narendramodi a very happy birthday. I look forward to visiting India again for our next Summit. Together we'll open a new chapter in our partnership," von der Leyen posted on X.
In a major signal to exporters, Brussels had on Wednesday announced that India's Carbon Credit Trading Scheme will be integrated into the EU's Carbon Border Adjustment Mechanism. This means any carbon price effectively paid in India under its domestic carbon market will be deducted from the levy charged under CBAM.
The move is expected to ease compliance costs for Indian exporters of carbon-intensive goods such as steel, cement, fertilisers, and aluminium, while also addressing concerns of double taxation. EU officials also promised simpler CBAM procedures to benefit small businesses.
The timing is significant. According to Commerce Ministry Special Secretary L Satya Srinivas, India and the EU have completed 13 rounds of free trade agreement negotiations, with the 14th round scheduled for Oct. 6-10 in Brussels. "Talks have made significant progress," Srinivas said, noting that both sides are keen to conclude negotiations at the earliest.
Sources told NDTV Profit that negotiations are now in their final stretch, with all major issues resolved. While both sides are working toward a comprehensive deal, they are not ruling out an early harvest arrangement if required.
Alongside the FTA, Brussels is also seeking an Investment Protection Agreement, a pact on Geographical Indications, and a Comprehensive Air Transport Agreement to expand direct flights and boost tourism and trade. The EU has pledged to step up investments in India through its Global Gateway initiative, while the EU-India Trade and Technology Council will intensify cooperation on foreign investment screening and technology partnerships.
Von der Leyen also underlined cooperation on global geopolitics, adding that India and the EU discussed ways to support Ukraine "in its fight for freedom."
