Ursula von der Leyen pushes for India-EU investment pact, calls it ‘missing piece’ in ties

European Commission President Ursula von der Leyen has called for an investment agreement between India and the European Union, describing it as the “missing piece of the puzzle” in strengthening economic ties between the two sides.

Speaking during the European Round Table for Industry in Gothenburg alongside Prime Minister Narendra Modi and Swedish Prime Minister Ulf Kristersson, von der Leyen said the proposed agreement would help reinforce economic cooperation at a time when global supply chains are undergoing major changes.

“One can say the trade agreement opened the door. An investment agreement walks us through this door,” von der Leyen said while underlining the need for deeper investment ties between India and Europe.

Her remarks come months after India and the European Union concluded negotiations on a landmark free trade agreement earlier this year after nearly two decades of talks.

The agreement, frequently described by both sides as the “mother of all deals”, aims to create one of the world’s largest free trade zones by reducing tariffs and expanding market access across sectors.

Von der Leyen said stronger investment cooperation was necessary to complement the trade pact, particularly in areas such as advanced manufacturing, clean technology, resilient supply chains and strategic industries. She also stressed that economic security had become a central concern globally amid geopolitical tensions and changing trade dynamics.

According to European Commission statements, the India-EU trade agreement covers goods, services, regulatory cooperation and sustainability measures, while discussions on investment protection and deeper capital flows continue separately.

The European Commission President also praised growing India-Europe ties and said the agreement would create fresh opportunities for businesses and workers on both sides.

She added that member states such as Sweden were already expanding bilateral cooperation with India in sectors including innovation, green transition and technology.

Prime Minister Modi, responding to von der Leyen’s remarks, said India and Europe shared strong potential for deeper strategic and economic cooperation. He reiterated India’s commitment to strengthening ties with European partners across trade, technology and security.

India and the EU have significantly expanded engagement in recent years amid shifting global geopolitical equations and supply chain diversification efforts.

Negotiations for the trade agreement, which had stalled for years over tariff and regulatory disagreements, were revived in 2022 and accelerated through multiple ministerial rounds.

Apart from trade and investment, India and the EU have also deepened cooperation in defence, maritime security, digital infrastructure, semiconductors and mobility partnerships for students and skilled workers.

Von der Leyen’s latest remarks are being viewed as a signal that Brussels wants to move beyond trade liberalisation and build broader long-term investment integration with India, particularly as Europe seeks reliable economic partners amid global economic fragmentation.