Introduction

The relationship between India and the European Union (EU) has entered a crucial phase with the recent visit of the European Commission’s College of Commissioners to New Delhi. This high-level delegation, led by the European Commission President, signifies a major step in deepening bilateral ties between India and Europe. With global geopolitics undergoing rapid shifts, particularly in transatlantic relations, the India-EU partnership has gained new strategic significance. The visit marks an expansion of cooperation across trade, technology, green energy, defense, and space, reinforcing the importance of this alliance for both parties.

A Deepening Partnership: A Historical Perspective

• India established diplomatic relations with the European Economic Community, the precursor to the EU, in 1962. The Joint Political Statement of 1993 and the Cooperation Agreement of 1994 set the foundation for stronger ties, leading to the establishment of the India-EU Summits.
• The first summit was held in Lisbon in June 2000, and by 2004, the partnership was elevated to a Strategic Partnership during the summit in The Hague.
• Over the years, India and the EU have developed a multi-tiered institutional framework to promote cooperation across multiple sectors.
• Notably, the India-EU Strategic Partnership: A Roadmap to 2025, adopted during the 2020 summit, outlines a clear agenda for mutual engagement.
• In May 2021, the two sides announced the resumption of negotiations for a comprehensive Free Trade Agreement (FTA) and an agreement on Geographical Indications, further strengthening economic cooperation.

Expanding Economic Cooperation

Trade and Investment Ties

• India and the EU have been negotiating an FTA for over 15 years, with both parties recognizing the economic benefits of such an agreement.
• The EU is India’s largest trading partner in goods, with bilateral trade reaching $135 billion in FY 2023-24. India’s exports to the EU amounted to $76 billion, while imports stood at $59 billion.
• In the services sector, bilateral trade was valued at $53 billion, with Indian exports accounting for $30 billion.
• The EU is also one of India’s most significant sources of Foreign Direct Investment (FDI), with cumulative FDI inflows from the EU amounting to $117.4 billion between April 2000 and September 2024.
• This represents 6% of total FDI equity inflows into India. Additionally, Indian investments in the EU have been substantial, valued at approximately $40.04 billion over the same period.
• Given these numbers, both India and the EU recognize the potential for expanding trade and investment. The renewed focus on an FTA, improved market access, and diversified supply chains will be instrumental in achieving this goal.

Technology Cooperation and Innovation

• The India-EU partnership in technology has gained greater significance due to rapid advancements in critical fields such as artificial intelligence (AI), semiconductors, and high-performance computing (HPC).
• In November 2022, both sides signed an Intent of Cooperation in High-Performance Computing, followed by a Memorandum of Understanding (MoU) on semiconductor research and development (R&D) in 2023.
• These agreements highlight the mutual interest in strengthening technological capabilities, particularly in light of China’s growing influence in this domain.
• The India-EU Trade and Technology Council (TTC), launched in 2022, serves as a strategic coordination mechanism to address challenges in trade, trusted technology, and security.
• This initiative is similar to India’s Initiative for Critical and Emerging Technologies (iCET) with the US and the Technology Security Initiative with the UK.
• The second ministerial meeting of the TTC is scheduled to take place in New Delhi, reinforcing the shared commitment to digital transformation and innovation.

Green Energy and Climate Cooperation

• The India-EU partnership is also expanding in the area of green energy and climate action. Under the India-EU Green Hydrogen Cooperation initiative, India was the exclusive partner country at European Hydrogen Week in Brussels in November 2024.
• In return, the EU played a key role in the International Conference on Green Hydrogen in Delhi in September 2024.
• The European Investment Bank (EIB) has committed to supporting Indian hydrogen projects with €1 billion in funding. This financial backing will help establish a robust green hydrogen ecosystem in India by 2030.
• Additionally, Indian and European companies are collaborating in the renewable energy sector, focusing on wind, solar, and hydrogen-based solutions.

Strategic and Security Cooperation

Defense and Maritime Security

• The India-EU defense partnership has gained momentum, particularly in maritime security and Indo-Pacific cooperation.
• The two sides have strengthened their engagement under the Enhanced Security in and with Asia (ESIWA+) initiative, which focuses on addressing regional security concerns, piracy, terrorism, and disaster management.
• In October 2023, India and the EU conducted their first joint naval exercises in the Gulf of Guinea, marking a milestone in their maritime collaboration.
• These exercises demonstrate a shared commitment to ensuring free and open maritime routes, particularly in response to China’s expanding influence in the Indo-Pacific region.

Space Collaboration

• India and the EU are also deepening cooperation in space exploration. In December 2024, the Indian Space Research Organisation (ISRO) successfully launched the EU’s PROBA-3 mission using the PSLV rocket.
• Additionally, ISRO and the European Space Agency (ESA) have collaborated on significant missions, including Chandrayaan-3 and Aditya-L1.
• An MoU on space cooperation has also been signed between ISRO and ESA, focusing on India’s upcoming human spaceflight mission, Gaganyaan. This partnership reflects a growing alignment in space technology and exploration between the two entities.

People-to-People Ties and Educational Exchanges

• One of the strongest pillars of the India-EU relationship is people-to-people connectivity. The growing Indian diaspora in the EU comprises students, researchers, and skilled professionals.
• Indian professionals received the largest share (over 20%) of EU Blue Cards issued in 2023-24, facilitating their entry into the European labor market.
• Educational collaborations have also flourished, with more than 6,000 Erasmus scholarships awarded to Indian students in the past two decades, making them one of the largest recipients.
• Additionally, over 2,700 Indian researchers have received funding through the EU’s Horizon Europe program, the highest globally. These initiatives highlight the EU’s commitment to fostering academic and research cooperation with India.

Geopolitical Considerations and Global Cooperation

• The India-EU partnership is also shaped by global political developments. One key issue expected to be discussed during ongoing bilateral meetings is the Russia-Ukraine conflict.
• With the US under President Donald Trump shifting its stance on the war, European nations are seeking alternative strategic partners, and India’s role in global diplomacy has become even more significant.
• Both India and the EU have expressed interest in promoting a multipolar world order, enhancing global governance mechanisms, and ensuring resilient supply chains in the wake of geopolitical tensions. These shared objectives provide a strong foundation for sustained cooperation in international affairs.

Conclusion

The India-EU partnership is witnessing unprecedented growth across trade, technology, green energy, defense, space, and education. The visit of the European Commission’s College of Commissioners to New Delhi marks a new era of engagement, reinforcing the strategic significance of this relationship. With ongoing negotiations for an FTA, advancements in critical technology sectors, increased maritime security cooperation, and expanding educational exchanges, the India-EU alliance is poised for even greater success in the coming years. As the world navigates shifting geopolitical landscapes, the India-EU partnership stands as a model for global cooperation, economic progress, and technological innovation.