Syllabus: Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.
Background and Strategic Context
- India and the European Union (EU) concluded a long-pending trade agreement recently.
- Negotiations spanned nearly 25 years, facing repeated delays and breakdowns.
- The agreement marks more than tariff alignment; it signals strategic convergence.
- It reflects attempts to stabilise a rapidly shifting global order.
Political Drivers Behind the Deal
- High-level summit diplomacy played a decisive enabling role.
- Engagement intensified after the Prime Minister’s Brussels visit in 2016.
- Regular India–EU summits, including 2021 Leaders’ Summit, built political trust.
- Leadership on both sides invested significant political capital.
- Domestic industry concerns were addressed through sustained consultations.
- Previous trade deals created momentum and institutional learning.
- EU political coordination pushed risk-averse bureaucracy toward compromise.
Geopolitical Imperatives
- Deal shaped by turbulence in the global strategic environment.
- U.S. commercial offensives altered transatlantic economic equations.
- China’s coercive economic posture intensified security concerns.
- Russia’s geopolitical assertiveness added urgency to partnerships.
- Agreement thus reflects broader strategic realignment, not trade alone.
Beyond Trade: Expanding Strategic Partnership
- Defence and Security Cooperation
- Shared interest in maritime stability and freedom of navigation.
- Potential for joint military exercises and intelligence sharing.
- Scope for Indo-Pacific capacity building initiatives.
- Energy Collaboration
- Europe seeks diversification and decarbonisation pathways.
- India requires affordable and scalable clean energy solutions.
- Cooperation possible in green hydrogen and renewables.
- Technology Partnership
- Technology governance increasingly shaped by geopolitics.
- Cooperation envisaged in semiconductors and artificial intelligence.
- Digital public infrastructure and data governance are focus areas.
- Mobility and Talent Flows
- Mobility of students, researchers and professionals remains vital.
- Visa and qualification recognition issues require resolution.
Strategic Outcomes and Future Pathways
- Partnership can strengthen multipolar global order.
- Scope for collaboration across Indo-Pacific and Global South.
- Alignment based on openness, resilience and democratic values.
- Multi-sector cooperation essential for durable interdependence.
- Trade agreement forms the foundation; strategic execution remains crucial.