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EU-India: Trade prospects

12-10-2020

The EU-India Summit held in July 2020 agreed to establish a regular high-level dialogue at ministerial level on bilateral trade and investment relations. In this way, the EU and India expressed a clear political will to work together to overcome issues that have hampered their trade relations in recent years and impeded advances towards a bilateral trade and investment agreement – where negotiations have been stalled since 2013 – and achievement of the potential of economic relations between the ...

The EU-India Summit held in July 2020 agreed to establish a regular high-level dialogue at ministerial level on bilateral trade and investment relations. In this way, the EU and India expressed a clear political will to work together to overcome issues that have hampered their trade relations in recent years and impeded advances towards a bilateral trade and investment agreement – where negotiations have been stalled since 2013 – and achievement of the potential of economic relations between the world's two biggest democracies.

EU-India: Cooperation on digitalisation

12-10-2020

A 'human-centric digitalisation to develop inclusive economies and societies' is the main concept behind the digital transformation of both the EU and India. During their July 2020 summit, the two agreed to promote global digitalisation standards characterised by 'safe and ethical deployment'. Their flagship initiatives – the EU digital single market and 'Digital India' – make them natural partners in the promotion of these global standards. Yet, if their ICT cooperation is to make sound progress ...

A 'human-centric digitalisation to develop inclusive economies and societies' is the main concept behind the digital transformation of both the EU and India. During their July 2020 summit, the two agreed to promote global digitalisation standards characterised by 'safe and ethical deployment'. Their flagship initiatives – the EU digital single market and 'Digital India' – make them natural partners in the promotion of these global standards. Yet, if their ICT cooperation is to make sound progress, some of Delhi's protectionist policies need further consideration.

European Council Leaders' Agenda 2020-21

05-10-2020

At the special European Council meeting of 1-2 October 2020, Charles Michel, President of the European Council, presented a new Leaders’ Agenda outlining his view of ‘the key challenges confronting the Union’ and setting a timetable for the Heads of State or Government to address these issues at meetings between October 2020 and June 2021. The new Leaders’ Agenda puts strong focus on the ‘green transition and digital transformation’, as well as on ‘Europe’s role in the world’, two core priorities ...

At the special European Council meeting of 1-2 October 2020, Charles Michel, President of the European Council, presented a new Leaders’ Agenda outlining his view of ‘the key challenges confronting the Union’ and setting a timetable for the Heads of State or Government to address these issues at meetings between October 2020 and June 2021. The new Leaders’ Agenda puts strong focus on the ‘green transition and digital transformation’, as well as on ‘Europe’s role in the world’, two core priorities in the EU Strategic Agenda 2019-24. Mr Michel intends to structure the approach to external relations discussions, notably through a series of strategic debates on relations with key partners. A number of EU priority topics are however missing, notably migration, the rule of law and the Conference on the Future of Europe. Mr Michel has, however, stated that the Leaders’ Agenda is a flexible tool, which can be updated as circumstances require.

Assessing the potential impact of an EU-India trade agreement

01-07-2020

The EU and India are major actors in the international arena and the discussions over a possible Free Trade Agreement has been ongoing for several years. This study analyses the potential effects of an FTA between EU and India in a "Cost of Non Europe" perspective. The results of a quantitative simulation of a potential FTA in goods and services indicate that welfare gains from increased trade for both sides may be between € 8 billion and € 8.5 billion (0.03 % increase with respect to the baseline ...

The EU and India are major actors in the international arena and the discussions over a possible Free Trade Agreement has been ongoing for several years. This study analyses the potential effects of an FTA between EU and India in a "Cost of Non Europe" perspective. The results of a quantitative simulation of a potential FTA in goods and services indicate that welfare gains from increased trade for both sides may be between € 8 billion and € 8.5 billion (0.03 % increase with respect to the baseline for the EU and about 0.3 % for India). Furthermore, a qualitative analysis suggests that potential gains may appear from a coordinated EU action in addressing possible side effects, distributive impacts and externalities (such as inequalities, labour market effects, poverty and development implications, environmental issues) and from increased coordination in the provision of global public goods. By considering these aspects, the Cost of Non-Europe in the field may be larger.

Challenges facing India's democracy and economy

13-05-2020

India has a 70-year history of democracy, tolerance and rule of law, and a successful record of managing its patchwork of cultures and religions. In recent months, however, following the second consecutive victory of Prime Minister Narendra Modi's Bharatiya Janata Party in the May 2019 general elections, this situation has been changing under the impact of an ever-increasing Hindu nationalist grip on society and politics. After Jammu and Kashmir, India's only Muslim-majority state, lost its autonomy ...

India has a 70-year history of democracy, tolerance and rule of law, and a successful record of managing its patchwork of cultures and religions. In recent months, however, following the second consecutive victory of Prime Minister Narendra Modi's Bharatiya Janata Party in the May 2019 general elections, this situation has been changing under the impact of an ever-increasing Hindu nationalist grip on society and politics. After Jammu and Kashmir, India's only Muslim-majority state, lost its autonomy, the government adopted the Citizenship (Amendment) Act (CAA), allowing foreigners from six religious communities living in three neighbouring countries to apply for Indian citizenship at a faster pace. This new legislation has prompted protests and divisions across India, as, according to both internal and external observers, citizenship would be determined along religious criteria, which risks undermining the country's traditional secularism. The government's plan to launch a national register of citizens has further increased the Muslim community's fear of discrimination. Communal tensions flared into violence in late February 2020 in Delhi, claiming 53 lives. At the same time, India's economy is experiencing a severe downturn: even before the coronavirus outbreak started to have an effect, its growth was slackening and so was job creation, while at the same time unemployment is high, consumer confidence and spending are low, and trust in the banking sector is eroding as credit weakness and non-performing loans hinder its performance. Contrary to expectations, the Union budget for financial year 2021 has not tackled existing structural weaknesses or generated a large fiscal stimulus as an answer to the slowdown.

India's parliament and governing institutions

11-03-2020

India is the biggest democracy in the world. With a population of 1.35 billion in 2018, India was also the world's second most populous country, and is projected to overtake China by 2027. Like the European Union (EU), it is a pluralistic, multi-faith, multilingual (with 22 recognised languages), and multi-ethnic country. Secularism has been enshrined in the Constitution. India's 1950 Constitution provides for a quasi-federal setup: powers are separated between the central union and the 28 state ...

India is the biggest democracy in the world. With a population of 1.35 billion in 2018, India was also the world's second most populous country, and is projected to overtake China by 2027. Like the European Union (EU), it is a pluralistic, multi-faith, multilingual (with 22 recognised languages), and multi-ethnic country. Secularism has been enshrined in the Constitution. India's 1950 Constitution provides for a quasi-federal setup: powers are separated between the central union and the 28 state governments. Competences are allocated according to administrative level, between the Union, states or 'concurrently'. The prime minister possesses the country's effective executive power. As 'Leader of the House' in the lower chamber, the prime minister also holds decisive power in deciding the House's agenda. However, the real power of initiating legislation belongs to the government, and the Parliament has no say on foreign affairs. India's Parliament is bicameral: it includes the Lok Sabha – the lower house – and the Rajya Sabha – the upper house. The two houses are equal, but the Lok Sabha dominates in deciding certain financial matters and on the collective responsibility of the Council of Ministers. General elections take place for Lok Sabha members every five years. The last elections took place in May 2019, when Narendra Modi was re-elected as Prime Minister. The Rajva Sabha is a permanent body consisting of members indirectly elected by the states, and it is not subject to dissolution. India has a common law legal system. The Supreme Court is the final court of appeal, headed by the Chief Justice of India. It arbitrates on any dispute between the Union and the states, as well as between states, and on the enforcement of fundamental rights. It has powers of judicial review over legislation adopted by both the Union and the states.

India: Economic indicators and trade with EU

30-09-2019

At the beginning of the century, the EU and India were growing exactly at the same path: how about today? Who is the main trade partner of India: China or the EU? And would you ever think that the EU exports to India pearls and precious stones more than electronic equipment? And how much is it easy to do business in New Delhi? Find the answers to these and many more questions in our EPRS publication on ‘India: Economic indicators and trade with EU’, part of a series of infographics produced in collaboration ...

At the beginning of the century, the EU and India were growing exactly at the same path: how about today? Who is the main trade partner of India: China or the EU? And would you ever think that the EU exports to India pearls and precious stones more than electronic equipment? And how much is it easy to do business in New Delhi? Find the answers to these and many more questions in our EPRS publication on ‘India: Economic indicators and trade with EU’, part of a series of infographics produced in collaboration with the European University Institute's GlobalStat on the world's main economies. This is an updated edition of an ‘At a Glance’ note published in July 2016.

India-administered Kashmir: current situation

13-09-2019

On 5 and 6 August 2019, the Indian Parliament approved the withdrawal of Article 370 of the Constitution, which had guaranteed Jammu and Kashmir, India's only Muslim-majority state, a high degree of autonomy. It also decided to split Jammu and Kashmir into two territories, both administered directly from Delhi. Meanwhile, the government deployed 46 000 troops, arrested regional political leaders and thousands of activists, suspended internet and communications across the valley, and shut down schools ...

On 5 and 6 August 2019, the Indian Parliament approved the withdrawal of Article 370 of the Constitution, which had guaranteed Jammu and Kashmir, India's only Muslim-majority state, a high degree of autonomy. It also decided to split Jammu and Kashmir into two territories, both administered directly from Delhi. Meanwhile, the government deployed 46 000 troops, arrested regional political leaders and thousands of activists, suspended internet and communications across the valley, and shut down schools and colleges.

India: environmental issues

10-04-2019

The entire south Asian region is threatened by climate change. Changes in average weather conditions are likely to create hotspots across the region and have negative impacts on living standards and gross domestic product (GDP). India is at the core of this trend: it ranks 14th in the last United Nations global climate risk index and in 2017 it was the second most-affected country in terms of casualties related to extreme weather. Air quality in Indian cities is quickly deteriorating and it is today ...

The entire south Asian region is threatened by climate change. Changes in average weather conditions are likely to create hotspots across the region and have negative impacts on living standards and gross domestic product (GDP). India is at the core of this trend: it ranks 14th in the last United Nations global climate risk index and in 2017 it was the second most-affected country in terms of casualties related to extreme weather. Air quality in Indian cities is quickly deteriorating and it is today worse than the situation in China: in the 2018 World Health Organization (WHO) global ambient air quality database, 11 of the 12 cities with the highest levels of small particulate – PM2.5 – are located in India. Air pollution goes hand in hand with poverty: in 2016 an estimated 790 million people (almost 60 % of the Indian population), still relied on biomass for cooking. Deforestation, water pollution, clean water shortages, and waste management are further issues of concern. The Indian authorities have taken several initiatives to tackle these issues. In 2008, the first national plan on climate change (NAPCC) outlined eight 'national missions' running up to 2017. India is a leader in the implementation of the Paris Agreement on climate change. It is a founding member of the International Solar Alliance and has ambitious targets in terms of solar power energy. It has launched a national clean air programme (NCAP) to combat air pollution. Prime Minister's Narendra Modi government has launched several flagship initiatives on environment, including a clean cooking scheme, Clean India, Clean Ganga, and Smart Cities Mission. The EU supports Delhi's efforts on tackling its environment challenges. At their March 2016 summit, the EU and India agreed on two joint declarations: on an India-EU water partnership and on a clean energy and climate partnership. The joint declaration on partnership for smart and sustainable urban development signed at the India-EU Summit in October 2017 is the framework for EU support for India's urbanisation challenges.

India: taking stock of Modi's five years

10-04-2019

From 11 April to 18 May 2019, 900 million Indians are invited to take part in the world's biggest democratic event: the election of the 543 members of the Lok Sabha (lower chamber). Voting will be held across the country in seven phases and the result will be declared on 23 May. In 2014 the Hindu nationalist Bharatiya Janata Party (BJP) obtained the absolute majority in India's Lok Sabha, and Narendra Modi became prime minister. Enjoying a strong and undisputed mandate, Modi has generated expectations ...

From 11 April to 18 May 2019, 900 million Indians are invited to take part in the world's biggest democratic event: the election of the 543 members of the Lok Sabha (lower chamber). Voting will be held across the country in seven phases and the result will be declared on 23 May. In 2014 the Hindu nationalist Bharatiya Janata Party (BJP) obtained the absolute majority in India's Lok Sabha, and Narendra Modi became prime minister. Enjoying a strong and undisputed mandate, Modi has generated expectations of unleashing the country's economic potential and has adopted many flagship initiatives in a bid to change the country. In the last five years, India has overtaken China as the fastest growing economy, becoming the world's sixth biggest economy and a space power. Doing business in the country has become easier. Poverty has been reduced. The government succeeded in introducing major fiscal unification reform and a new law on bankruptcy. It failed, however to create the necessary stock of jobs for young people or to promote long-awaited labour reforms. The situation for farmers has worsened, and an overnight demonetisation hindered progress among small businesses and rural communities, while failing to bring real advances in the fight against corruption. State banks hold large stocks of bad loans and the government has increased pressure on the central bank and on its independence. Hindu nationalism and religious intolerance, pressure on freedom of expression, possible state intrusion into privacy, citizenship issues and other topics have been matters for concern in the area of human rights, although the country remains a robust democracy governed by the rule of law. Modi has increased the country's presence in the global arena, although the framework of India's relations with the major powers has not changed. Following two summits in 2016 and 2017, the EU and India have embarked on a road towards cooperation on non-trade issues. Trade has meanwhile stagnated and little progress has been made in negotiations on a trade and investment agreement.

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