India and EU have been strategic partners for over two decades, since 2004. EU has
also emerged as a top trading (Euro 120-135 bn) and investment partner for India .
The relationship and institutional mechanisms including the Troika dialogue have
continued to reinforce and deepen for mutual benefit . Even though in several areas
like Bilateral Trade Agreement the progress has been slow and painful , the current
disruption in the Trans-Atlantic alliance engineered by Trumpian unilateralism has
created a certain urgency to close the Trade deal at the earliest . It is expected that
during January 2026 , the gaps will be addressed and FTA could even be signed on
January 27 or before when the India-EU Summit takes place in New Delhi. India has
also conferred a distinct honour on the EU leadership by inviting them as the Chief
Guests on the Republic Day -January 26. European Commission President Ursula
Von der Loyen and European council Chief Antonia Costa are expected to be the
Chief Guests this year .
This gesture on the part of India and the fact the under the changed global
circumstances and volatility the EU have begun to attach greater importance to one
another by cementing and frequenting high level interactions ,despite certain political
differences with certain members over the Russia-Ukraine war and India’s continued
imports of crude from Russia .However , pragmatism and the fact that India has
become the fastest growing major economy surpassing UK and Japan in a space of
one year to be the fourth largest one and India’s clear articulation of its national
interests , have made them realise the need to dispense with rigid positions for their
own interests. Besides , India and UK as well as several others have already signed
the FTAs . The EC-FTA with some European countries with investment commitments
has also become operational. All these factors , along with the ever threatening
Trumpian tariffs and disenchantment with US policies , has caused a reasonable
ground to identify and overcome any irritants in India-EU trade and economic
relations including the trade agreement.
High level contacts have been exceptional in recent past . It was for the first time that
twenty two EU Commissioners travelled to India . German Chancellor Metz just
concluded a state visit signing over two dozen agreements. French President is also
expected to visit early this year as several hundred Rafael fighter aircraft’s and other
equipment’s are being negotiated and finalized by India and France . Shri Ajit Doval,
National Security Adviser to the Prime Minister of India and H.E. Emmanuel Bonne,
Diplomatic Adviser to the President of the Republic of France co-chaired the 38th
India-France Strategic Dialogue in New Delhi on 13 January .During the Strategic
Dialogue, India and France reiterated their commitment to the strategic partnership.
Earlier Minister of External Affairs Dr S Jaishankar started of the New year with the
first visit to Europe -France and Luxembourg . Apart from conferring with his
counterpart he also called on French President Macron . In the India-France Year of
Innovation, they explored ways to diversify ties in areas of innovation and
technology, startups, health, education and mobility, as well as discussed growing
cooperation in strategic areas of defence, security, space, civil nuclear and maritime
security and economy. An India -Weimar Foreign Ministers meeting was also held .
dr Jaishankar , appreciated his counterpart and President Macron’s comments on
both sides being the Chair of G7 and BRICS respectively during 2026 would aim to work together to find synergies rather than working at cross purposes. He also said
that ‘ our two nations committed to multi-polarity, I believe that working together is
important for ourselves, also for stabilizing the global politics at this stage.” Italian
PM Meloni has invited PM Modi to visit Italy . The IMEC corridor and
multidimensional route has tremendous connectivity and capacity potential Al
between India and, Middle East and Europe , which both sides are serious to exploit
despite immediate roadblocks.
The comprehensive trade and investment deal has dragged on for over two decades
. But fortunately the differences on market access , agriculture , automobiles
,technical and non-technical barriers to trade including GIs and Carbon Border
Adjustment Mechanism of EU are nearing redressal or being narrowed to the mutual
satisfaction . The Trade deal will provide smoother access to each other’s markets
especially for the Indian labour intensive products.
The remit of bilateral engagement has expanded to various other strategic domains
including climate change , counter-terrorism , defence , security including cyber , AI
Quantum and new communication technologies 6G and Indo-Pacific , and human
resource , education and skill development and innovation and renewables . India
and EU had established a Trade and Technology Council in 2023 to enhance
cooperation in digital governance , semiconductors, clean energy technologies and
resilient supply chains . Migration and Mobility remain a major priority for India . How
to immunise the global and value supply chains (GVCs) from utter dependencies on
a certain country to arbitrary behaviour of certain others remain a major area of
concern and congruence for both sides . India reiterates that relationship can be
reinforced only if their Mutual Respect; Mutual Interests; Mutual Sensitivity.
India and the EU have a matured strategic mindset driven by mutual interests and
can lead to a productive and rewarding strategic partnership with shared values and
democratic architecture , for the 21st century. Both support the rules based order
and multilateral global governance and institutions which provides a fulcrum for the
shape of things to come .
(Anil Trigunayat is a former Indian Ambassador to Jordan, Libya and Malta and
Distinguished Fellow at the prestigious Thinks Tanks like Vivekananda
International Foundation and United Services Institute of India)
