India and the European Union have agreed to finalize a long-pending free trade agreement this year and boost cooperation in trade, technology, connectivity and defense, Indian Prime Minister Narendra Modi and the European Commission chief said Friday.

Axar.az reports that citing AP, Modi said after meeting with European Commission President Ursula von der Leyen that the two sides have directed their teams to conclude the bilateral free trade deal by end of this year. Modi said many decisions were taken to “elevate and accelerate India-EU partnership” in the meeting.

“India-EU strategic partnership is natural. Its core is trust and shared belief in democratic values,” Modi said.

The European Commission chief said the “free trade agreement between the EU and India would be the largest deal of this kind anywhere in the world.”

“It is time to be pragmatic and ambitious. And to realign our priorities for today’s realities,” von der Leyen said at an address to a think tank in New Delhi before meeting with Modi. “You can count on my full commitment to make sure we can deliver.”

The European Commission chief is in India on a two-day visit from Thursday and is accompanied by top leaders of EU member nations.

India and the EU relaunched talks on the bilateral agreement in 2021, but issues like market access for products such as cars and alcoholic beverages have been sticking points. The next round of negotiations is set to take place in March.