Reconfiguring India-EU Relations: A Stronger Partnership for a Changing World
Introduction
European Commission President Ursula von der Leyen, along with a high-level delegation of EU Commissioners, visited India. This visit was more than just a formal diplomatic engagement; it was a major step in strengthening the relationship between India and the European Union (EU). As the world faces economic uncertainty, rising tensions among powerful nations, and the need for stable alliances, both India and the EU recognise the importance of working together more closely.
The focus of this renewed partnership is on trade, technology, security, and connectivity. The discussions held during the visit revolved around completing the long-delayed Free Trade Agreement (FTA), deepening technological cooperation, enhancing defence collaboration, and investing in sustainable infrastructure projects. This essay explores the evolving relationship between India and the EU, highlighting how their partnership is shaped by economic interdependence, global political shifts, and shared ambitions for a balanced international order.
The History of India-EU Relations
India and the EU have a long history of diplomatic relations, dating back to 1962 when India first engaged with the European Economic Community (EEC). However, it was only in 2004 that their partnership was officially declared a “strategic partnership.” Despite this progress, the relationship struggled to go beyond formal declarations. Slow decision-making, bureaucratic hurdles, and a lack of a clear long-term plan often slowed down meaningful cooperation.
In recent years, however, the global political and economic landscape has changed significantly. The EU has begun to look beyond its traditional alliances, particularly due to concerns about the stability of its relationship with the United States. Similarly, India, while maintaining its strong ties with the US, is keen to expand its partnerships with other major economies to ensure its security and economic growth. As a result, India and the EU have found common ground and are making efforts to turn their partnership into something more meaningful and beneficial for both sides.
Economic Collaboration: The Push for a Free Trade Agreement
One of the most crucial aspects of the India-EU relationship is their economic partnership. The EU is India’s largest trading partner, with bilateral trade exceeding €100 billion annually. However, despite this strong foundation, trade relations have not reached their full potential due to obstacles such as regulatory barriers, high tariffs, and differences in market access policies.
A major step in strengthening economic cooperation is the long-discussed Free Trade Agreement (FTA). Negotiations for this agreement began in 2007 but faced several challenges over the years. Now, with both sides eager to finalise the deal, the FTA is expected to be completed within a year.
This agreement will open up new opportunities in industries such as pharmaceuticals, automobiles, textiles, and digital services. It will also address critical issues like reducing tariffs, protecting intellectual property, and creating a fair system for resolving trade disputes. Moreover, the FTA will play a vital role in making supply chains stronger and more resilient—an important factor in today’s unpredictable global economy.
To support trade cooperation, the India-EU Trade and Technology Council (TTC) was established. This platform aims to simplify trade policies, reduce market access restrictions, and encourage collaboration in advanced industries like artificial intelligence (AI), semiconductor production, and high-performance computing. Given recent global disruptions in supply chains, especially in semiconductor manufacturing, this partnership is expected to benefit both India and the EU significantly.
Advancing Technological Innovation
Technology is a key factor in global economic growth, and both India and the EU understand its importance in shaping the future. The discussions at the India-EU Trade and Technology Council (TTC) meeting focused on AI regulation, cybersecurity, and digital public infrastructure.
One of the most significant developments was the creation of an India-EU Semiconductor Partnership. The COVID-19 pandemic and growing geopolitical tensions have highlighted weaknesses in the global semiconductor supply chain. Many countries have realised the need to reduce their dependence on China for semiconductor production. By working together, India and the EU can strengthen their domestic semiconductor industries while also boosting innovation in chip design and production.
Another important initiative is the India-EU Green Hydrogen Alliance. Green hydrogen, produced using renewable energy, is expected to play a major role in making industries such as steel, cement, and heavy transportation more environmentally friendly. With India’s ambitious clean energy targets and the EU’s strong emphasis on sustainability, this alliance will be instrumental in accelerating the transition to a greener future.
Defence and Security: A Growing Area of Cooperation
Historically, the India-EU relationship has focused more on economic cooperation than on defence and security. However, recent developments in the global political landscape—such as the growing influence of China, territorial disputes in the Indo-Pacific, and threats to international trade routes—have prompted both sides to pay greater attention to security cooperation.
India is playing an increasingly important role in the Indo-Pacific region, an area that is becoming central to global politics. The EU, recognising this, is eager to strengthen maritime security cooperation with India. Agreements were made during the visit to conduct joint naval exercises, improve intelligence-sharing mechanisms, and enhance overall security collaboration.
Furthermore, discussions were held regarding India’s potential participation in EU-led defence initiatives such as Permanent Structured Cooperation (PESCO). This reflects the EU’s growing interest in working with India to address common security challenges.
Counter-terrorism cooperation was another key focus of the discussions. Both India and the EU have been victims of terrorism, and tackling terrorist financing and radicalisation is a shared priority. The Security of Information Agreement (SoIA) signed between the two sides aims to strengthen their cooperation in cybersecurity and counter-radicalisation efforts.
Building Better Connectivity: The Future of Infrastructure Development
One of the most promising aspects of India-EU relations is their commitment to improving global connectivity. The EU’s €300 billion Global Gateway Initiative, which aims to finance high-quality infrastructure projects, aligns well with India’s vision of regional connectivity.
A key topic of discussion was the India-Middle East-Europe Economic Corridor (IMEC), a trade route designed to link India with Europe through the Middle East. This corridor is expected to make supply chains more efficient, lower transport costs, and encourage greater economic cooperation between India and the EU.
In addition to physical infrastructure, digital connectivity is also a priority. India and the EU are working together to develop smart city projects, green mobility solutions, and digital infrastructure that promotes sustainable urban development. By investing in high-quality infrastructure that meets environmental and economic sustainability standards, both sides aim to set an example for the rest of the world.
A Changing Global Order: The US Factor
A major reason behind the strengthened India-EU partnership is the changing global order. In recent years, uncertainty about US foreign policy—especially with the possibility of Donald Trump returning as President—has made the EU look for alternative strategic partners. Given India’s growing economic and political influence, the EU sees it as a reliable and stabilising force in an increasingly unpredictable world.
For India, maintaining a balanced foreign policy is essential. While its relationship with the US remains strong, engaging more deeply with the EU allows India to reduce its dependence on any one global power. This strategy provides India with greater flexibility in dealing with international challenges and strengthens its position as a global leader.
This shift in India-EU relations is part of a larger trend where regional powers are forming multiple partnerships to create a more stable and balanced global order. By working together, India and the EU are not only strengthening their own economic and security interests but also contributing to a more peaceful and cooperative international system.
