Syllabus: Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests
Context: Commerce Minister Piyush Goyal visits Brussels for high-level talks with EU counterpart to accelerate India-EU Free Trade Agreement negotiations at crucial stage.
More in News:
- Meeting with EU Commissioner Maroš Šefčovič aims to provide strategic direction and political impetus following 14th negotiation round held earlier this month.
- European Parliament Trade Committee delegation visits New Delhi from October 27-29 to enhance mutual understanding amid intensive ongoing trade negotiations.
- Discussions will cover key FTA areas including market access, non-tariff measures, regulatory cooperation, and review progress requiring further convergence between parties.
European Union (EU)
- Political and economic union of 27 member states located primarily in Europe.
- Established by Maastricht Treaty which entered into force on November 1, 1993.
- Promotes cooperation and integration among members enhancing economic and political stability in Europe.
- Has own currency Euro, used by 19 member states for financial transactions.
- Features single market allowing free movement of goods, services, and capital across members.
- Governance Structure
- European Council: heads of state/governments setting overall political direction for EU.
- European Commission: executive branch of EU responsible for policy implementation and enforcement.
- European Parliament: directly elected legislative body representing EU citizens in decision-making.
- Council of EU: main decision-making body representing member states’ interests, adopting legislation.
- Court of Justice: supreme court ensuring consistent EU law interpretation across members.
- European Central Bank: maintains price stability in euro area, manages monetary/exchange policies.
- European Court of Auditors: independent guardian of financial interests, improves EU financial management.
- India-EU Relations Evolution
- Relations strengthened in early 1990s during India’s economic liberalization and EU expansion.
- Cooperation Agreement 1994 established basis for strategic partnership between India and EU.
- First India-EU Summit 2000 marked watershed in bilateral relationship evolution significantly.
- Joint Action Plan 2005 strengthened cooperation in trade, investment, education, research areas.
- Renewed Dialogue 2017 on foreign policy, defense, security deepened bilateral cooperation substantially.
- Currently cooperate on international peace, security, climate change, sustainable development issues globally.
- Areas of Cooperation
- Economic: India’s bilateral trade in goods with the European Union was $136.53 billion (2024-25), making the EU India’s largest trading partner for goods.
- India’s exports to the EU were valued at $75.85 billion, while imports from the EU were $60.68 billion.
- Infrastructure: EU financing projects in energy and transport sectors for India’s modernization.
- Political: Strategic partnership with high-level dialogue on counter-terrorism, non-proliferation, development assistance.
- Security: Cooperation on terrorism, cyber security, climate change through conferences and workshops.
- Research: Joint projects through Horizon 2020 in renewable energy, health, advanced materials.
- Cultural: Erasmus+ program enables student exchanges between India and EU countries.
- Multilateral: Cooperation on climate change, development, security through UN, WTO, G20 forums.
- Economic: India’s bilateral trade in goods with the European Union was $136.53 billion (2024-25), making the EU India’s largest trading partner for goods.
- Challenges
- Trade disputes: EU criticizes India’s high tariffs on automobiles, pharmaceuticals seeking market access.
- Security approaches: Differences on Afghanistan, Middle East, Balkans, Iran, Israeli-Palestinian conflict issues.
- Intellectual property: EU concerns about patent protection, enforcement, compulsory licensing decisions in India.
- Human rights: EU raised concerns on religious freedom, minority treatment, rule of law, CAA 2019.
- Climate change: Different perspectives leading to varied approaches addressing this global challenge.
- Way Forward
- Deepen trade and investment ties resolving disputes, liberalizing services, promoting two-way investment flows.
- Enhance political-security cooperation through intelligence sharing, joint training, capacity building, multilateral collaboration.
- Increase research-innovation cooperation supporting joint projects, researcher-student exchanges in priority areas.
- Promote cultural and people-to-people exchanges through educational and cultural exchange programs continuously.
- Strengthen multilateral cooperation in UN, WTO, G20 addressing global challenges and promoting shared values.
Q- Discuss the key areas of India-EU cooperation beyond trade. How do joint initiatives in research, innovation, and climate change contribute to strengthening bilateral ties? (15 Marks)