India–EU Strategic Roadmap

Context:

The European Union (EU) has issued a document outlining its agenda for relations with India, structured on five pillars: economy, emerging technologies, security, global connectivity, and people-to-people contact.

Deepening India–EU Cooperation in a Multipolar World

Economy and Trade

Strategic Trade Partners: EU is India’s largest trading partner, with bilateral trade crossing EUR 120 billion in 2022–23, accounting for over 90% rise in a decade.
Investment Linkages: EU is also India’s second-largest foreign investor; around 6,000 European companies operate in India, creating over 1.3 million jobs.
FTA Negotiations: Both sides are negotiating a Free Trade Agreement (FTA), investment protection agreement, and geographical indications (GI) agreement.

Global Connectivity

Infrastructure and Finance: EU’s Global Gateway mobilises EUR 300 billion globally for digital, energy, and transport infrastructure, complementing India’s initiatives like MASHRAK (Multimodal and Holistic Advancement for Security, Health, and Regional Connectivity).
Eurasian Linkages: EU–India cooperation seeks to strengthen connectivity from the Indo-Pacific to the Middle East and Europe, with projects like the India–Middle East–Europe Economic Corridor (IMEC).
Sustainable Pathways: Focus on green transport corridors, renewable energy projects, and resilient supply chains.

Emerging Technologies

Innovation Cooperation: EU supports India’s AI strategy, digital governance reforms, and joint innovation hubs.
Technology Transfer: Cooperation in semiconductors, space technologies, clean energy, and startups.
Critical Sectors: Collaboration on quantum computing, cybersecurity, and biotechnology.

Security and Defence

Strategic Convergence: Both sides share concerns about maritime security, cyber threats, counterterrorism, and Indo-Pacific stability.
Institutional Dialogue: Negotiations on a Security of Information Agreement to enhance classified data sharing.
Defence Collaboration: India and EU enhance cooperation between EU Naval Force and Indian Navy in the western Indian Ocean; joint exercises, counter-piracy, and anti-trafficking operations.

People-to-People Ties

Mobility and Migration: EU is India’s top destination for student mobility, with over 2.25 lakh Indian students in Europe.
Skill Partnerships: India–EU mobility partnerships focus on skills, innovation, and academic exchanges.
Cultural Linkages: Tourism, cultural festivals, and university collaborations strengthen societal bonds.

Comprehensive Analysis

Strategic Context: The agenda comes amid heightened global uncertainty and geopolitical shifts. EU views India as a vital partner for balancing US–China rivalry, diversifying supply chains, and securing the Indo-Pacific.
Economic Potential: Successful conclusion of the FTA can significantly expand trade, particularly in automobiles, digital services, pharmaceuticals, and renewable energy.
Technological Synergy: India’s growing digital economy and EU’s regulatory expertise can jointly shape global norms in AI, data privacy, and cybersecurity.
Security Imperatives: Indo-Pacific cooperation adds a strategic dimension, aligning EU’s Indo-Pacific strategy with India’s Act East and SAGAR (Security and Growth for All in the Region) vision.
Challenges: Negotiation delays in FTA, regulatory divergences, EU’s protectionist measures in agriculture, and India’s cautious approach to climate obligations may hinder progress.

Way Forward:

Expedite FTA negotiations with a balanced approach on tariffs and non-tariff barriers.
Joint investment in resilient supply chains for critical minerals, semiconductors, and clean technologies.
Institutionalise India–EU Defence and Security Dialogue for regular naval exercises and cyber cooperation.
Expand student and academic mobility under Erasmus+ and India’s GIAN program.