Answer

The EU-India partnership holds immense strategic significance as the EU is India’s largest trading partner, accounting for €124 billion worth of trade in goods in 2023 or 12.2% of total Indian trade. However, limited progress in deliverables such as the stalled FTA negotiations and geopolitical cooperation gaps highlights the need for transformative approaches amid global realignments like the Indo-Pacific pivot.

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Strategic Importance of EU-India Partnership

• Economic Synergy: The EU is India’s largest trading partner, and India is a critical emerging market for the EU, offering potential for sustainable growth.
  For example: In 2023, India and the EU launched the Trade and Technology Council to deepen economic ties and promote sustainable growth through innovation.
• Democratic Alliance: Both share democratic values, offering a platform for cooperation to counter rising authoritarianism globally, such as China and Russia’s strategic partnership.
  For example: India and the EU’s collaboration in G20 showcased their shared commitment to democratic governance and multilateralism.
• Geostrategic Balance: India’s position in the Indo-Pacific complements Europe’s growing interest in the region, enhancing global security and economic cooperation.
  For example: The EU’s Indo-Pacific Strategy aligns with India’s Act East Policy to address shared security concerns.
• Technological Collaboration: As hubs of innovation, India and the EU can jointly lead in emerging technologies like AI, green tech, and quantum computing.
  For example: India and the EU partnered under Horizon Europe, the EU’s research program, to co-develop solutions in green technology and artificial intelligence.
• Supply Chain Diversification: EU-India partnership offers an opportunity to reduce global dependency on China, especially in critical sectors like pharmaceuticals and rare earth materials.
  For instance: The EU-India TTC prioritizes creating alternative supply chains for critical raw materials and components.

EU-India partnership has been Big on Strategies but Small on Delivery:

Big on Strategies

• Extensive Frameworks: Multiple agreements and councils, like the TTC, highlight an ambitious framework for collaboration.
  For example: The Strategic Partnership Roadmap (2025) outlines comprehensive goals for trade, technology, and geopolitics.
• Focus on Global Stability: Shared strategies emphasize addressing global challenges like climate change, terrorism, and multipolarity.
  For example: Both prioritise collaboration in international forums like COP and the Paris Agreement implementation.
• Recognition of Potential: Both sides acknowledge the transformative potential of their economic and geopolitical alignment in addressing global power shifts.
  For example: EU’s emphasis on India as a Trusted Partner post-COVID underscores its recognition of India’s strategic value.

Small on Delivery

• Trade Deal Delays: The EU-India Free Trade Agreement (FTA) negotiations have been ongoing for 17 years with limited progress, stalling economic benefits.
  For instance: Despite multiple rounds, differences on tariffs and market access remain unresolved.
• Limited Defence Ties: EU’s defence collaboration with India lags behind India’s ties with the U.S. and Quad partners.
  For example: India still depends on Russia for 36% of its defence imports, reflecting limited EU defence outreach.
• Underutilized Frameworks: Councils like the TTC lack tangible outputs, making them symbolic rather than impactful.
  For instance: The TTC’s limited achievements in advancing digital cooperation highlight gaps in execution.

Measures to Transform the Relationship Beyond Traditional Trade Negotiations

• Deepen Defence Cooperation: Accelerate high-level defence engagements, ensuring EU defence industries meet India’s needs for advanced weapons and technology.
  For example: Deploying the EU Defence Commissioner to India can catalyze long-term defence agreements and investments.
• Strengthen Economic Security: Develop joint supply chains to reduce reliance on China in critical sectors like raw materials and semiconductors.
  For example: Initiatives under the TTC to create rare earth material hubs in India can boost trust and collaboration.
• Expand Technology Cooperation: Enhance collaboration in emerging technologies like AI, space exploration, and biotech through joint research initiatives and funding mechanisms.
  For example: EU-India joint ventures in green hydrogen technology can aid global climate goals.
• Enhance People-to-People Ties: Simplify visa regimes and create cultural exchange programs to deepen mutual understanding and workforce integration.
  For example: Erasmus+ scholarships for Indian students can strengthen educational and cultural linkages.
• Institutionalise Strategic Dialogue: Establish a dedicated annual summit for high-level political and economic discussions to ensure consistent and actionable outcomes.
  For example: A summit akin to U.S.-India iCET can institutionalize strategic engagement between the EU and India.

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Strengthening the EU-India partnership demands diversification into technology sharing, climate action, and supply chain resilience, complemented by timely execution of commitments. Utilizing mechanisms like the EU-India Connectivity Partnership and aligning with the Global Gateway initiative can foster sustainable development and ensure mutual growth in the evolving multipolar global order.

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