Nirmala Sitharaman pushes deeper India-EU economic ties, critical supply chains

Washington: Finance Minister Nirmala Sitharaman met European Commissioner for Economy Valdis Dombrovskis and discussed further deepening of the India-EU Economic and Financial Partnership.

Sitharaman met Dombrovskis on the sidelines of the G20 Finance Ministers and Central Bank Governors (FMCBG) Meeting, in Asheville, on Tuesday.

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"The two sides discussed further deepening of the India-EU Economic and Financial Partnership, including through the India-EU macroeconomic dialogue and the Trade and Technology Council (TTC)," a Finance Ministry statement said.

Sitharaman and Dombrovskis also discussed ongoing India-EU FTA and Investment Protection Agreement negotiations, with a shared commitment to take these engagements forward.

The two sides exchanged views on strengthening resilient and diversified supply chains, including cooperation on critical raw materials and technologies.

Sitharaman emphasised the importance of not only sourcing critical minerals, but also developing processing and value-addition capabilities.

The two leaders also sought to explore opportunities for greater cooperation in FinTech, AI and generative AI, including fostering greater engagement between Indian and European start-ups.

Both sides reaffirmed their commitment to further strengthen the India-EU partnership and work together on shared priorities, the Finance Ministry statement said.

Sitharaman also met South Korean Deputy Prime Minister Koo Yun-cheol in Asheville, on Monday.

The Finance Minister acknowledged that India considers South Korea as a very important economic partner, and the relationship has been mutually beneficial across several dimensions.

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The two ministers discussed strengthening bilateral economic and financial cooperation, including taking forward the India-Korea Finance Ministers' Meeting through early working-level consultations.

Sitharaman noted that India and South Korea have enjoyed a Special Strategic Partnership since 2015, and this relationship has been further strengthened this year through the Joint Strategic Vision for 2026-2030 announced during President Lee's State Visit to India in April 2026.

The Finance Minister said that India looks forward to strengthening India-Korea cooperation even further, including in emerging and strategic areas such as critical minerals and resilient supply chains, and remains committed to fostering this partnership for the mutual benefit of our people and industry.

Sitharaman welcomed greater investment from South Korea in emerging sectors and suggested that Indian companies will further explore investment opportunities in the country, with a view to promoting mutually beneficial investment flows.

The Finance Minister also suggested strengthening investment cooperation through NIIF and advancing the proposed concessional credit line under Korea's Korea's Economic Development Cooperation Fund (EDCF) framework for infrastructure and green-transition investments in India.

The two ministers also discussed ongoing efforts towards interoperability of India and Korea's QR-based payment systems, which would facilitate greater ease of payments and strengthen economic and people-to-people linkages between the two countries.

Mentioning India's growth potential and the sheer scale of the Indian economy, the South Korean minister said that both countries should further develop stronger bilateral cooperation, which would further enhance trade and investments for both sides.