Deepak Dwivedi
EUROPE has so far remained the missing link in India’s efforts to bolster strategic partnerships. In this backdrop, the two-day visit of European Commission President Ursula von der Leyen along with the European College of Commissioners was to conclude a balanced, ambitious, and mutually beneficial free trade agreement (FTA) by this year-end, besides an investment protection agreement as soon as possible. Although the planets may be in alignment for the largest deal of this kind in the world – to borrow an expression from von der Leyen – this is far from easy and entails commitment at the highest levels to cross the finishing line.
Leyen’s visit came at a pivotal moment for Europe and India as trans-Atlantic ties are rapidly fraying and dark clouds gather for a global trade war, thanks to US President Donald Trump’s weaponisation of tariffs. The EU wants to strengthen its strategic partnership with India that was inked way back in 2004.
India, too, seeks to deepen its relations with the EU as it navigates through the turbulence unleashed by Trump’s disruption to global trade. Both sides have accordingly committed to raise this strategic partnership to a higher level, whose contours will be unveiled at the next India-EU summit scheduled to be held later this year in India. The second meeting of the TTC and bilateral ministerial-level talks indicated possibilities of deeper cooperation in trade, trusted technologies, investments, innovation, green transition, security, skilling, and mobility.
To bolster the strategic partnership in defence, India and the EU have decided to step up cooperation in maritime security and the Indo-Pacific. Both expressed satisfaction at the growing cooperation in this regard, including joint exercises and collaboration between the Indian Navy and EU maritime security entities.
Both agree on the importance of peace, security, stability, and prosperity of the Indo-Pacific. Both have a shared stake in upholding a rules-based international order and seek to de-risk ties with China. Von der Leyen underscored that this region is vital for Europe as it is one of the largest destinations for its exports, and seeks to work with like-minded countries to promote a free and open Indo-Pacific.
India has welcomed the EU’s decision to join the Indo-Pacific Oceans Initiative – that is a non-treaty-based arrangement to promote cooperation among countries – and said that both sides will work on triangular development projects for sustainable development in this region and Africa. As trans-Atlantic ties deteriorate with Trump excluding Europe and Ukraine from his peace talks with Russia, India and the EU expressed support for a just and lasting peace in Ukraine based on respect for international law, principles of the UN charter, territorial integrity, and sovereignty.
Disagreements over market access bedevilled the talks as the European Union (EU) seeks duty cuts on cars, wine, and whisky. India is pushing for concessions for micro, small, and medium enterprises and has serious concerns that the carbon border adjustment mechanism could lead to higher duties of 25 to 30 per cent on its iron, steel, and aluminium exports from January 1, 2026. The IndiaEU Trade and Technology Council (TTC) has been entrusted to shape outcomeoriented cooperation on market access and barriers to trade. Both India and the EU have agreed to take concrete steps to take forward the India-Middle EastEurope Economic Corridor project.
