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Are India and EU growing closer as global alliances shift?

DW
Thursday, 27 February 2025 (09:55 IST)
European Commission chief Ursula von der Leyen is set to start her two-day visit to India on Thursday, accompanied by the entire college of commissioners — all of the top leaders of the European Union's executive branch.
 
India and the EU already cooperate closely on issues like foreign policy, defense and technology development. Now Brussels is ramping up efforts to finalize a long-delayed free trade agreement with the world's most populous country.
 
The Indian Foreign Ministry says the trip will pave the way for "strengthening bilateral partnership based on growing convergences."
 
Both sides hope to boost cooperation in digital innovation and sustainable tech areas with the meeting of the India-EU Trade and Technology Council, a bilateral body comprised of selected EU commissioners and Indian ministers.
 
EU trying to 'diversify partnerships'
 
Foreign policy experts and diplomats say the EU is currently keen on reducing dependence on traditional allies like the US, while still  being wary of China.
 
"The visit comes at a critical moment as Europe navigates a rupturing trans-Atlantic alliance and a disruptive [Donald] Trump presidency. This also comes on top of continuing concerns about China's assertiveness and Russia's aggression," Ajay Bisaria, a former diplomat, told DW.
 
"This disruptive behavior of the major powers that provided it cheap security, goods and energy, drives the EU to actively diversify its partnerships, and India has emerged as a natural partner," he added.
 
Trade deal still in limbo
 
India and the EU are trying to expedite a free trade agreement and boost collaboration in clean technology, as well as looking at strategic alignment in the face of potential US tariffs.
 
But multiple issues regarding the trade deal, including market access for products such as cars or alcoholic beverages, are still causing issues. There are also differences on intellectual property protections, specifically India's insistence that investors exhaust local remedies in the country before seeking international arbitration.
 
The next round of negotiations is set to take place in March.
 
Response to China's 'Belt and Road'
 
Gulshan Sachdeva, a European Studies professor who also serves as chief coordinator of India's Global South Centre of Excellence, says expanding ties with the EU goes beyond just the free trade deal.
 
"Even if a trade agreement remains elusive, the current global geopolitical fragmentation offers new opportunities for the world's two largest democratic entities to collaborate in areas such as technology and connectivity," Sachdeva told DW.
 
He also said that India had been engaging extensively with major European powers on a bilateral basis, but it also recognized the importance of fostering relationships with the EU as a bloc.
 
He pointed to India's desire to modernize and a growing convergence of interests in the Indo-Pacific. According to Sachdeva, both sides are actively exploring new avenues through initiatives such as the Trade and Technology Council and the ambitious India-Middle East-Europe Economic Corridor (IMEC), which aims to bolster traffic and communication between Europe and Asia. IMEC is often described as a response to China's ambitious, multibillion-dollar "Belt and Road" program..
 
"Moreover, India's engagement with the EU has expanded beyond its traditional focus on major states to forge new linkages with the Nordics, Central and Eastern Europe, and the Mediterranean region," Sachdeva said.
 
EU still wants 'de-risking' from China
 
Shanthie Mariet D'Souza, the head of the Mantraya Institute of Strategic Studies in India, told DW that ties between New Delhi and Brussels were not yet fully optimized. While working with the US and the EU,India also boasts strong ties with Russia.
 
"The EU remains critical of India's position on the Ukraine war. On the other hand, India considers the EU's carbon border adjustment mechanism and deforestation legislation to be unfair," D'Souza said.
 
Despite these differences, however, both India and the EU have a strategic partnership that touch upon issues including security, climate change, and sustainable development. India is also not immune to the current geopolitical turbulence coming from the US, she added.
 
"India is evaluating its response to the Trump administration's unilateral actions regarding tariffs and immigration," D'Souza said.
 
The visit by Ursula von der Leyen and other top EU officials presents a chance for "serious dialogue" on a whole range of issues, she noted. These include "trade, green technology, education, health, AI, expanding defense relationship, Indo-Pacific and de-risking from China, particularly for Europe." 
 
New geopolitical alignment?
 
Over 6,000 European companies are present in India, and trade in goods has increased by almost 90% over the past decade. According to the European Commission, the EU as a whole is now India's largest trading partner, ahead of the US and China. In 2023, exports and imports to the European bloc accounted for $130 billion (€124 billion) or 12.2% of total Indian trade.
 
"This visit marks a historic milestone in EU-India relations and is critical because it reflects a mutual recognition of each other's growing global authority and a push to turn that into action — whether through trade deals, tech partnerships, or a stronger geopolitical alignment," C Raja Mohan, a visiting professor at Singapore's Institute of South Asian Studies, told DW.
 
Earlier this month, Indian Foreign Minister Subrahmanyam Jaishankar emphasized the strategic importance of the India-EU relationship in navigating global challenges. "In a world that promises to be so volatile and so uncertain, a stronger India-EU relationship can be an important stabilizing factor," he said.

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