The European Commission paid an official visit to India on February 27 and 28 and thus marked a new step to strengthen the diplomatic and trade policy relationships between the two world powers. This visit, in which more than 20 EU Commission members took part, aimed to revive a “strategic partnership” between the EU and India, whereby the focus was on three key areas: trade, technology and the Ukraine crisis.
Free trade agreement on the horizon
According to MediaPart, the talks culminated in a mutual obligation to “achieve a free trade agreement by the end of 2025”. This initiative is in line with the more comprehensive strategy of the EU to diversify its trading partnerships, since the tensions last with both the United States and China. In 2024, bilateral trade between the EU and India reached 120 billion euros. This makes the EU the largest trading partner of India and, according to Brussels, accounts for over 12 percent of Indian foreign trade.
However, there are obstacles. A high-ranking European civil servant, cited by Euronews, described the Indian market as “relatively closed”, especially for important EU export goods such as cars, wine and spirits. India raises high tariffs on these products, which is a major challenge for the negotiations.
Technology at the center of the dialogue
In addition to trade, technology is a crucial area of strategic cooperation. After the discussions were resumed in 2022, the EU and India founded a commercial and technology council in 2023. During the recent visit, the Council met for the second time to strengthen the collaboration in critical sectors, including artificial intelligence (AI), quantum computers, batteries for electric vehicles and semiconductor production.
India, which is due to host a AI summit in six months, could benefit from European cooperation to catch up with China, says Anunita Chandrasekar, an expert at the Center for European Reform. In addition, the persistent tensions between India and China – for example the Indian ban on Tikok in 2020 – could cause India to deepen its technological relations with the EU.
India and the Ukraine crisis
Ukraine was also a central topic in the discussions between the Indian Prime Minister Narendra Modi and the President of the European Commission, Ursula von der Leyen. Brussels tries to win India for the cause of Ukraine because the European heads of state and government are excluded from the peace negotiations between the United States and Russia. However, India has retained a neutral attitude, which is reflected in its abstention in the event of a recent UN vote to convict Russian aggression.
The EU is also interested in ensuring that India enables sanctions against Russia. In November 2023, Brussels sanctioned several Indian companies because of circumvention of these measures, which underlines the importance of this topic in bilateral relationships.
India-Europe corridor: a strategic connection
Another important point of discussion during the EU India summit was the India-Nahost-Europa corridor (IMEEC). As the Indian Prime Minister Narendra Modi confirmed, detailed discussions about this ambitious infrastructure initiative were held with the European heads of state and government.
The corridor, which is already in development, is said to combine India via the Middle East (West Asia) with a combination of sea, rail and road connections with Europe. Prime Minister Modi was confident that the IMEEC as a catalyst for world trade, sustainable growth and economic prosperity will serve, as NDTV reported.
This project is in line with the EU Global Gateway Initiative, which aims to develop secure and sustainable infrastructure worldwide and to position India as a central actor in global supply chains, while Europe is offered an alternative trade route in view of the changing geopolitical dynamics.
Global Gateway: an investment lever
In fact, EU investments in India are also part of the Global Gateway program, a European initiative for the development of intelligent, clean and safe infrastructure in the areas of digital, energy and transport. Between 2021 and 2027, Team Europe will mobilize up to 300 billion euros in order to finance sustainable, high-quality projects and at the same time to comply with strict environmental and social standards.
According to Le Figaro, India often criticizes the strict regulations of the EU, especially in environmental issues that have led to friction-for example, when the EU regulation is adopted.
A long way for negotiations
Despite the clear willingness to advance, negotiations between the EU and India remain complex. As the Financial Times emphasizes, the trade talks originally started in 2007 before they stalled for almost a decade. The most important remaining obstacles include disagreements on the protection of intellectual property and the environmental requirements of the EU, which often consider India as exaggerated.
Despite these challenges, both India and the EU seem determined to deepen their partnership in the middle of a changing geopolitical landscape in which traditional alliances are redefined
This article previously appeared on fashionunited.uk and was used with digital tools translated.
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