The European Union (EU) is a unique political and economic union of 27 European countries, formally established by the Maastricht Treaty (1993). India and the EU share a long-standing and multi-dimensional partnership. In recent years, the relationship has gained renewed strategic salience amid global power shifts and geopolitical uncertainties.
Evolution of India–European Union relations:
- Ancient & Early Contacts: Indo-Roman trade links, noted by Pliny the Elder, marked early economic engagement.
- Cold War Phase: India–EEC ties, 1962 remained largely economic due to geopolitical constraints. Mutual scepticism derailed the partnership.
- Strategic Turn (1990s–2000s):
- 1994 Cooperation Agreement institutionalised relations.
- First India–EU Summit (2000) elevated engagement.
- Strategic Partnership (2004) expanded cooperation beyond trade.
- Deepening Phase:
- Joint Action Plan (2005) and Strategic Agenda 2025.
- Launch of Trade and Technology Council (2022).
- Contemporary Phase:
- Cooperation on Indo-Pacific, climate change, connectivity and global governance.
Major Areas of Cooperation:
1. Economic and Trade Cooperation:
- EU is India’s largest trading partner, with goods trade at USD 136 billion by 2024–25, accounting for nearly 17% of India’s exports.
- EU is a major investor in India; Indian companies like Tata Group have a strong EU presence.
- Connectivity initiatives:
- India–EU Connectivity Partnership, 2021.
- India–Middle East–Europe Economic Corridor, 2023.
2. Strategic and Security Cooperation:
- Joint naval exercises under EUNAVFOR Atalanta at Gulf of Aden.
- Cooperation on counter-terrorism, maritime security and cyber security.
- EU joined India-led Indo-Pacific Oceans Initiative, 2023.
3. Science, Technology and Innovation:
- S&T Cooperation Agreement, 2007.
- ESA–ISRO Proba-3 Mission, 2024.
- EURATOM–India nuclear research pact, 2020.
- Collaboration under Horizon Europe and clean energy research.
4. Climate Change and Sustainability:
- Cooperation on renewable energy, climate finance and sustainable development.
- Alignment on global climate goals, though with differentiated responsibilities.
5. Multilateral and Global Governance:
- EU support for India’s permanent membership in UNSC.
- Cooperation at UN, WTO and G20 to uphold a rules-based order.
Challenges in India–EU Relations:
- FTA Deadlock: Differences on tariffs, IPR, agriculture subsidies and labour mobility.
- CBAM (Carbon Border Adjustment Mechanism): Impacts Indian exports like steel and cement.
- Divergence on Russia–Ukraine Conflict: India’s energy and defence ties with Russia contrast with EU sanctions.
- Moral policing Issues: EU concerns on CAA, religious freedom and civil liberties.
- Foreign Policy Divergences: Differing approaches on China, Iran and Middle East issues.
- Internal EU Challenges: Brexit, Euroscepticism and political fragmentation affect coherence.
Way Forward:
- Revitalise Trade Negotiations: Conclude a balanced FTA addressing market access and sustainability concerns.
- Strategic Convergence in Indo-Pacific: Expand maritime cooperation and capacity building.
- Green and Digital Partnership: Align EU’s Global Gateway with India’s MAHASAGAR vision.
- Technological Collaboration: Focus on AI, semiconductors, clean energy and space.
- Strengthen Multilateral Cooperation: Joint leadership in reforming global institutions.
- Enhance People-to-People Ties: Expand Erasmus+, academic exchanges and mobility frameworks.
Conclusion:
India–EU relations have evolved from a trade-centric engagement to a comprehensive strategic partnership. A pragmatic, future-oriented approach can transform the partnership into a pillar of stability and prosperity in an increasingly multipolar world.
‘+1’ Value Addition:
- Over 70% of India–EU trade is in manufactured goods, showing strong industrial and value-chain integration.
- EU’s Carbon Border Adjustment Mechanism (CBAM) could affect USD 8–10 billion of Indian exports, especially steel, aluminium and cement.
- The 11,700-km Blue Raman submarine cable directly links India with Italy and France, strengthening digital and data connectivity.
- Alignment of the EU’s Global Gateway with India’s MAHASAGAR vision provides a sustainable alternative to China’s BRI.
- The ISRO–ESA Proba-3 mission, 2024 reflects deepening high-end scientific and space collaboration.
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