This comes as Prime Minister Narendra Modi and President of the European Commission (EC), Ursula von der Leyen are expected to discuss a range of issues, including negotiations for a trade deal and greater cooperation on security, defence, and fast-emerging technologies such as Artificial Intelligence (AI).Signalling a high political priority in pursuing economic integration with the European Union (EU) amid shared concerns about the overcapacity in China and uncertainties in the global trade order due to tariff threats by US President Donald Trump, a meeting convened by the Prime Minister’s Office (PMO) with top secretaries ahead of a high-level EU delegation visit starting Thursday focused on the need for a cohesive, and collaborative, approach.This comes as Prime Minister Narendra Modi and President of the European Commission (EC), Ursula von der Leyen are expected to discuss a range of issues, including negotiations for a trade deal and greater cooperation on security, defence, and fast-emerging technologies such as Artificial Intelligence (AI).The high-level meeting convened recently by the PMO, which included all top secretaries to the Government of India and featured presentations by key ministries on the approach to the upcoming discussions, resolved to take a cohesive and collaborative approach in parleys with EU delegation members led by the EC chief, The Indian Express has learnt. The meeting also comes at a time when there is growing recognition of the need for a more productive template for Free Trade Agreement (FTA) negotiations, given the mixed outcomes of trade deals inked so far, including the new agreements negotiated by the current government. Senior government officials have said that India is now targeting larger markets such as the UK and the EU for export growth.This meeting attains greater significance since it sets the stage for rethinking New Delhi’s stance on crucial talks to revive a FTA that has been under discussion for over a decade. If concluded, it would be India’s largest FTA, potentially improving market access for labour-intensive sectors such as textiles, leather, and marine products in the country’s second-largest export market after the US.This is not the first time both partners have sought to sign a trade deal; the first such negotiations began in 2013 but failed due to disagreements over market access. However, in May 2021, EU and Indian leaders agreed to resume negotiations for a “balanced, ambitious, comprehensive, and mutually beneficial” trade agreement.The likelihood of a trade deal with the EU also assumes significance as India’s trade reliance on the bloc is rising, amid a marked shift in global trade along geopolitical lines, according to a United Nations Conference on Trade and Development (UNCTAD) report published last year. The UNCTAD estimates, based on national statistics, show that India’s dependence on China and the EU grew by 1.2 per cent, while its reliance on Saudi Arabia declined by 0.6 per cent.“During the last two years, the geographical proximity of international trade has remained relatively constant, showing minimal nearshoring or far-shoring trends. However, since the latter part of 2022, there has been a noticeable rise in the political proximity of trade,” the UNCTAD report stated last year.Story continues below this ad“This indicates that bilateral trade patterns have been favouring trade between countries with similar political stances. Concurrently, there has been an increasing concentration of global trade favouring major trade relationships, although this trend softened in the last quarter of 2023,” the report released earlier this month added. Ravi Dutta Mishra is a Principal Correspondent with The Indian Express, covering policy issues related to trade, commerce, and banking. He has over five years of experience and has previously worked with Mint, CNBC-TV18, and other news outlets. ... Read More© The Indian Express Pvt LtdTags:donald trumpEuropean Union (EU)