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Significance of India-Europe Partnership
Context:
The visit of the European Commission delegation to New Delhi, led by President Ursula von der Leyen, marks a new phase in the India-EU strategic partnership. This visit underscores the growing importance of bilateral cooperation in trade, technology, security, and green energy.
A Historic Visit by the European Commission
- First-ever visit: The visit of 22 out of 27 European Commissioners to India is unprecedented.
- Strengthening ties: This is the first international visit of the College of Commissioners since they took office in December.
- Strategic Partnership milestone: The visit marks the third decade of India-EU relations.
Key Areas of Engagement
- Trade & Technology Council (TTC): Strengthening trade, digital technologies, and security.
- Artificial Intelligence (AI) & Semiconductors: Collaborating on innovation and semiconductor R&D.
- Green Hydrogen & Sustainability: Expanding cooperation in renewable energy, water management, and urban development.
- Resilient Supply Chains: Ensuring security and diversification of global trade routes.
- Defence & Space: Strengthening military and space cooperation for regional stability.
Deepening Diplomatic Relations
- Diplomatic ties since 1962: India established relations with the European Economic Community in 1962.
- Strategic Partnership since 2004: Upgraded at the 5th India-EU Summit in The Hague.
- Regular High-Level Engagements: PM Modi and EC President Ursula von der Leyen have met at least seven times.
Trade and Investments
- Free Trade Agreement (FTA): Negotiations have been ongoing for over a decade.
- Largest Trading Partner: The EU is India’s top trade partner for goods.
- Rapid Growth in Trade: Bilateral trade in goods reached $135 billion in FY 2023-24.
- EU’s Investment in India: Cumulative FDI from the EU is $117.4 billion (16.6% of total FDI).
- Indian FDI in Europe: Indian companies have invested $40.04 billion in the EU.
Technology & Digital Cooperation
- Science & Technology Agreement (2007): Ongoing collaboration in research and innovation.
- Semiconductor Cooperation: Signed MoU in 2023 for R&D and manufacturing.
- High-Performance Computing (HPC): India-EU collaboration since 2022.
- Global Partnership on AI: EU participated in India’s AI Summit in 2023.
Green Energy and Sustainability
- Green Hydrogen Partnership: India was the exclusive partner at European Hydrogen Week (2024).
- European Investment Bank Support: Committed €1 billion for India’s hydrogen projects.
- Renewable Energy Cooperation: Collaboration to develop a green hydrogen ecosystem by 2030.
People-to-People Ties
- Growing Indian Diaspora: Indian professionals hold over 20% of EU Blue Cards (work permits).
- Erasmus Scholarships: Over 6,000 Indian students have received scholarships.
- Top Researchers in EU Programmes: More than 2,700 Indian researchers funded under EU’s Horizon Europe.
Defence and Space Cooperation
- Maritime Security & Indo-Pacific Strategy: Strengthening military cooperation through ESIWA+.
- First India-EU Naval Exercise: Held in October 2023 in the Gulf of Guinea.
- Joint Space Missions: Collaboration on Chandrayaan-3, Aditya-L1, and Gaganyaan.
- PROBA-3 Satellite Launch: Successfully launched by ISRO’s PSLV in December 2024.
