EU’s Strategic Agenda with India

The recent strategy document by the European Union (EU) on India signifies a crucial shift in India-EU relations, which have historically been marked by mutual neglect. This relationship has begun to evolve positively, particularly in the 21st century, with concerted efforts from both Brussels and Delhi to bridge the gap between potential and actual partnership performance.

Contextual Background

• Europe is revamping its global relationships due to multiple geopolitical pressures: 
  1. The assertion of Russia.
  2. China's assertive economic policies.
  3. Disruption in US alliances under President Donald Trump.

Strategic Goals

The EU's strategy is a blend of ambition and pragmatism, aiming to deepen, broaden, and better coordinate cooperation with India.

• Recognizes India as an indispensable partner in shaping the international order.
• Acknowledges mutual benefits: "India's success benefits the EU, just as the EU's success benefits India."

Economic Relations

• The EU is India's second most important commercial partner after the US.
• Bilateral trade details: 
  1. Goods trade: €120 billion.
  2. Services trade: €60 billion.
  3. India accounts for less than 2.5% of the EU’s total trade.
• The EU aims to establish a Free Trade Agreement (FTA) with India to reduce barriers and enhance trade and investment flows.
• India is equally committed to concluding the FTA swiftly, viewing it as a strategic objective.

Technological and Innovation Collaboration

• India is a rapidly growing manufacturing and technology hub.
• Potential areas of collaboration: 
  1. EU-India Innovation Hubs.
  2. Startup Partnership.
  3. Joint work in AI, semiconductors, and outer space.

Security and Defence Cooperation

• The EU recognizes the importance of security cooperation with India in a multipolar world.
• Proposed EU-India Security and Defence Partnership will focus on: 
  1. Maritime security.
  2. Defence industrial expansion and modernization.
  3. Cyber and hybrid threats.
  4. Counterterrorism.
  5. Crisis management.

Challenges and Considerations

• The ongoing war in Ukraine impacts EU-India relations, especially concerning India's ties with Moscow.
• India must recalibrate its view of Europe, balancing its relationships with both Brussels and Moscow.
• The growing stakes in India-EU relations necessitate this recalibration.