Background and Context
- Timing: Ahead of the India-EU leaders’ summit scheduled for February next year, weekly preparatory meetings are planned.
- Reason: With the US under Trump showing unpredictability in global alliances, the EU positions itself as a predictable, all-weather partner for India.
- Official Document: EU issued a Strategic Agenda for India-EU ties based on five pillars:
- Economy & Trade
- Emerging Technologies
- Security & Defence
- Global Connectivity
- People-to-People Ties
Relevance :
- GS II (IR): Strategic partnership, FTA, investment protection, migration, people-to-people ties.
- GS III (Economy & Tech): Trade flows, technology transfer, industrial competitiveness, supply chain resilience.
- GS II/III (Security): Indo-Pacific security, maritime & cyber cooperation, counterterrorism.
Economy & Trade
- EU as a Partner:
- EU is India’s largest trading partner; India is the EU’s largest partner in the Global South.
- 2024 trade: Goods €124 billion, Services €90+ billion. EU exports €80 billion services to India.
- Investment & Employment:
- 6,000 European companies in India employ 3 million directly, millions indirectly.
- FDI: EUR 140 billion (2023), doubling in 5 years.
- Trade Imbalances:
- India accounts for <2.2% of EU trade in goods/services.
- Indian investment in EU: EUR 10 billion.
- Agreements in Progress:
- Free Trade Agreement (FTA): To reduce tariff & non-tariff barriers, target completion by end 2025.
- Investment Protection Agreement (IPA), Geographical Indications agreement, Comprehensive Air Transport Agreement, Macroeconomic & financial dialogue.
Global Connectivity
- EU Global Gateway: Mobilises EUR 300 billion for energy, digital, and transport infrastructure globally.
- India Initiatives: MAHASAKTI and MHASG (Security & Growth).
- Goal: Strengthen physical and digital connectivity between EU and India, opening new commercial opportunities for businesses.
Emerging Technologies
- EU Strengths: World-class research, digital infrastructure, regulation, green & digital tech expertise.
- India Strengths: Skilled workforce, large datasets, vibrant digital economy, strong startup ecosystem.
- Objective: Joint development and tech transfer, fostering innovation and industrial competitiveness.
Security & Defence
- Strategic Dialogue: Launched in June 2022, addressing maritime security, cyber security, counterterrorism, non-proliferation.
- Agreements in Negotiation:
- EU-India Security & Defence Partnership Agreement
- Security of Information Agreement for classified info sharing
- Cooperation Areas:
- Counterterrorism, terror financing, online propaganda, drug trafficking
- Dual-use technology, supply chain security, innovation
- EU-India naval cooperation in the Western Indian Ocean
- Strategic Alignment: EU’s Indo-Pacific security agenda aligns with India as a regional stability pillar.
- Economic Security Link: Stronger customs and technological collaboration improves industrial competitiveness and supply chain resilience.
People-to-People Ties
- Migration:
- 825,000 Indians in EU (largest group with Blue Cards & transfers).
- Focus on legal migration, tackling illegal flows.
- Education & Research:
- Enhance student, academic, and researcher exchanges.
- Attract top Indian talent amid US restrictions under Trump.
- Cultural & Social Exchange: Strengthen soft power and bilateral understanding.
Strategic Takeaways
- Economic Diplomacy: FTA, IPA, and investment flow aim to deepen bilateral trade and industrial cooperation.
- Tech & Innovation: Collaboration on emerging and green technologies positions India as a key innovation partner.
- Security & Regional Stability: Shared interests in maritime security, cyber resilience, and Indo-Pacific stability.
- Soft Power & People Mobility: Strong focus on migration, education, and cultural ties, complementing strategic and economic objectives.
- EU Positioning: Offers predictable alternative to US; sees India as a core partner in Global South and Indo-Pacific.
