India-EU summit: PM says need mutual FTA solution

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For the first time since the Lisbon Treaty, India and the European Union held a summit here in Delhi today. While there was no formal announcement on the India-EU free-trade agreement (FTA), the biggest trade deal of its kind was discussed by the top leadership of both sides, reports CNBC-TV18's Rituparna Bhuyan.

Prime Minister Manmohan Singh acknowledged that there are areas where negotiations are stuck. Singh said, "There are obviously some problems but we are confident that those problems can be resolved and will be resolved. Both of us have reaffirmed our commitment to an agreement as early as possible of the broad based trade and agreement."

But the EU leadership believes that talks on the trade deal will be concluded by autumn this year.

These words by Prime Minister Manmohan Singh on the India-EU FTA must have been music to the ears of the Indian auto industry, which does not want the Indian government to offer any tariff concessions to the passenger car segment.

Herman Van Rompuy, president, EU Council said, "We are happy to announce that we mad significant progress in the last few days in the negotiations on the FTA."

Rompuy and his colleague, José Manuel Barroso also briefed the Indian PM on the Eurozone crisis and the latest in the Greece bailout package talks.

José Manuel Barroso, president, EU Commission said, "We are now working on the finalisation of the second segment. I hope, it will be approved, as it is the best way forward for Greece to get out of this difficult situation and ensure the stability of the Euro area."

The summit was also the occasion for signing of MoUs on cooperation on science and technology and data sharing. Moreover, the EU leadership also apprised Manmohan Singh of their concerns on the Iranian Nuclear Programme. It remains to be seen, if the good will generated translates in to a speedy resolution of differences on the India-EU FTA.