EU-India relations: Time for a new boost?
The European Union (EU) is seeking to strengthen its strategic partnership with India, in place since 2004. The European Commission has given a strong signal in this direction. Commission President Ursula von der Leyen announced in Davos that the first visit of the whole College of Commissioners to a third country would be to India, on 27 and 28 February 2025. The EU-India Trade and Technology Council will also meet. A joint communication on a new strategic EU-India agenda is expected in the second quarter of 2025. An EU-India summit may take place in the last quarter of 2025. The EU wants to develop its relationship with India, whose market and economic growth (including in green technology) represents a valuable opportunity for EU companies. India's strategic geographical position in the heart of the Indo-Pacific, where about 80 % of total global trade by volume passes, makes it a key partner for maintaining the security of the region and the freedom of navigation that are crucial to EU interests. The EU is also looking to expand its circle of key partners, against a backdrop of uncertainty over transatlantic relations. India meanwhile maintains a privileged relationship with Russia and is strengthening ties with the Trump administration. The EU and India are currently negotiating a free trade agreement, an investment protection agreement and an agreement on geographical indications. They also cooperate on a wide range of policies, including security, climate and energy, connectivity, research and innovation, and space. However, as the European Parliament underlined in its report on EU-India relations in January 2024, the partnership has not yet reached its full potential. Meanwhile, the EU-India five-year roadmap to 2025 is coming to an end, creating an opportunity to continue building a strong relationship. To develop their partnership, the EU and India would need to address some challenges. In particular, on trade negotiations New Delhi considers the EU carbon border adjustment mechanism and deforestation legislation to be unfair and detrimental to domestic markets. The EU is concerned about India's stance on Russia's invasion of Ukraine and about its human rights situation.
Briefing