NEW DELHI: After talks between Prime Minister Narendra Modi and his Polish counterpart Donald Tusk here on Thursday, India and Poland signed four agreements, including one expressing their intent to leverage the India-European Union (EU) free trade agreement to double their bilateral trade from the current $6.3 billion by 2030. The two countries also established a defence industry dialogue to pave the way for co-development and co-production in the sector.
Poland shares a 530-km-long border with Ukraine. Addressing a joint media briefing after meeting Tusk, Modi said India would contribute to any meaningful effort to bring peace to Ukraine. Tusk is on a three-day visit to India amid a renewed global push to end the conflict in Ukraine. Modi and Tusk noted the negative impact of the war in Ukraine on global food and energy security, especially for the Global South.
Warsaw is set to receive €43.7 billion ($51.3 billion) under the EU’s €150 billion ($176 billion) Security Action for Europe (SAFE) fund to augment its defence capabilities to meet what Warsaw views as an increased Russian threat. Poland is the biggest beneficiary of the scheme and can spend 35 per cent of the amount on investments in defence production abroad, including in India. It is in this context, official sources pointed out, that the defence dialogue will become important. Among NATO countries, Poland is the biggest spender on its armed forces relative to the size of its economy and plans to spend 4.8 per cent of its gross domestic product on defence in 2026.
Modi and Tusk welcomed the growing interaction between Indian and Polish defence industries and encouraged them to identify commercially viable areas of cooperation. The defence industry dialogue will prepare a forward-looking framework for defence industrial cooperation, including greater business-to-business engagement. Both sides underlined the importance of having an Agreement on Mutual Protection and Exchange of Classified Information, which is expected to be signed soon. The agreement is important for India-EU defence cooperation given India’s defence ties with Russia. “Today we have agreed to deepen ties in defence, space, and nuclear energy. We invite Polish companies to engage in co-development and co-production with India in all these strategic areas,” Modi said. “In critical minerals and coal gasification too, we will develop new partnerships with Polish expertise,” he added.
At a business forum held later in the day, half a dozen agreements were signed between the private sectors of the two countries, spanning space, railways, mining and coal gasification. Tusk is on a three-day visit to India, accompanied by his minister for finance and economy, Andrzej Domanski, and 100 leading Polish business leaders and industry representatives. Tusk will be in Bengaluru on Friday, where he will attend a business forum and also interact with industry representatives from the information technology and space sectors.
During their talks, Modi and Tusk discussed opportunities for close cooperation on semiconductors and potential collaboration in the circular economy and recovery industry, particularly focusing on battery recycling and refining rare earth minerals. An agreement in the mining sector is under negotiation. The two countries will also explore opportunities for increasing direct flights on routes between Poland and India.
Modi said even as the world was going through a period of uncertainty and change, India and Poland were emerging as important centres of growth, technology and innovation. “And the India-EU FTA has further expanded these opportunities. Upon entry into force, this agreement will open up new opportunities for exports of machinery, chemicals, plastics, and engineering goods from India to Poland,” Modi said. “Additionally, we will attract new investments from Poland in sectors such as railways and mobility, advanced manufacturing, food processing, and biotech,” he said. The two leaders called for its early signing and ratification as well as timely implementation. Modi congratulated Poland on crossing the $1 trillion GDP mark and noted the resilience and dynamism of the Polish economy. Modi also noted India’s 7.8 per cent GDP growth in the last quarter.
Source: Business Standard
