“The negotiations have progressed steadily and I am happy to report that we have made a significant step forward,” European Commission President, José Manuel Barroso said in New Delhi after an India-EU summit.
“Our positions are now closer in all areas and the contours of the final agreement are emerging. We have therefore committed to intensify these negotiations. I expect the finalization of these negotiations this autumn.”
India's Prime Minister Manmohan Singh said considerable progress had been made in resolving market disputes that have marred talks for over five years. "There are complex issues involved, but we have both agreed to expedite discussions," Singh said after the talks.
The two sides signed cooperation agreements on sharing statistics and securing energy supplies by developing renewable energy technologies as well as improving the efficiency of power grids, buildings and appliances.
The agreement will reportedly increase wattage, end chronic power cuts and reach 400 million people who still have no access to electricity, but at the same time bringing down fossil fuel emissions that are blamed for global climate change.
Tension over Iran
EU top officials also pushed India to put more pressure on Iran. But the two partners disagreed on the issue of sanctions imposed by the EU and the U.S. over Iran’s nuclear programme.
"On the position of Iran, we have at least one common line that is we have to find a solution by diplomatic means. We have to negotiate on Iran's nuclear programme," Van Rompuy said after the summit in New Delhi where he called on India to use its strong economic ties to draw Tehran into talks.
"In order to achieve that result, you need more pressure on Iran, more sanctions on Iran," he said.
At an earlier news conference, India's Prime Minister Manmohan Singh said the nuclear issue needs to be resolved through diplomacy and defended India buying of Iran's oil.
"Iran is a close neighbour. It is an important source for our energy," he said. "There are problems with Iran nuclear programme. We sincerely believe that this issue can be and should be resolved by giving maximum scope to diplomacy," Singh said.
On the eve of the summit, India's trade secretary, Rahul Khullar, said there was no reason why India should not take advantage of business opportunities arising as European companies reduce sales to Iran.
Iran is turning to barter - offering gold bullion in overseas vaults or tankerloads of oil - in return for food as the new sanctions kick in, hurting its ability to import basic staples for its 74 million people.
A large delegation of Indian businessmen is heading to Tehran in the next few weeks to explore new trade opportunities. India observes U.N. sanctions but was still free to trade a vast range of products with Iran, Khullar said.
