Recently, European Commission President Ursula von der Leyen’s visit to India, alongside the EU Cabinet, signals a pivotal step in strengthening the EU-India strategic partnership.

India’s Strategic Balancing

• Reshaping of US policy: Trump’s policies reshape global alliances, affecting India and Europe.
  • US, Russia, and China relations in flux, requiring India to rethink strategies.
• Traditional Approach: India historically balanced ties with the U.S. and Russia to navigate power shifts. 
  • Engaged in Moscow-led coalitions like BRICS to hedge against U.S. policy volatility.
• Stronger EU-India Axis: With fluid US-Russia-China dynamics, India needs diversified partnerships. 
  • The EU, a missing link in India’s strategic framework, offers significant economic and technological benefits as the third-largest global economy and a key trade & investment partner.

India-EU Relations

• Historical Perspective: India and the EU established a strategic partnership in 2004, saw declining momentum in the early 2010s as Brussels prioritized trade with China, and revived engagement from 2016 onward, leading to post-pandemic cooperation.
• Key Initiatives
  • India-EU Trade and Technology Council
  • India-Middle East-Europe Economic Corridor (IMEC)
  • Enhanced Indo-Pacific collaboration
• Economic Challenges: India-EU trade remains underdeveloped despite strong potential, while the India-China trade deficit nears $100 billion annually.
  • Trump’s policies pose global economic risks, making economic reforms and reduced dependence on Chinese imports crucial.
• Alignment: EU’s shift to “de-risk” China ties and engage in the Indo-Pacific region aligned with India’s strategic goals.
• Political Divisions: Political divisions in Europe deepen as US allies openly support right-wing parties like AfD in Germany, with J.D. Vance bypassing Chancellor Scholz to meet AfD leader Alice Weidel.
  • The centre-right CDU criticizes US policies and calls for reduced European dependence on Washington.

Key Takeaways from Von der Leyen’s Visit

• Revitalizing Engagement: Strengthening ties with the world’s third-largest economy.
• Strategic Convergence: Mitigating risks from U.S. unpredictability through deeper cooperation.
• Free Trade Agreement (FTA): A priority for boosting bilateral trade.
• Economic & Technological Cooperation: Leveraging the EU’s strengths in science, technology, industry, capital, and consumer markets to enhance India’s economic resilience.

Conclusion

India and the EU must move beyond past diplomatic inertia to forge a stronger, more independent strategic alliance in response to evolving global dynamics.

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