European Union and India agreed on Monday to set up a trade and technology council to tackle challenges at the nexus of trade, trusted technology and security, the head of the European Commission Ursula von der Leyen said in statement.

"Both sides agreed that rapid changes in the geopolitical environment highlight the need for joint in-depth strategic engagement," the statement said.

"The Trade and Technology Council will provide the political steer and the necessary structure to operationalise political decisions, coordinate technical work, and report to the political level to ensure implementation and follow-up in areas that are important for the sustainable progress of European and Indian economies," it said.

(Reporting by Jan Strupczewski)