INDIA EU RELATIONS

INDIA EU RELATIONS

• A delegation of 22 European Commission (EC) members of 27, led by President Ursula von der Leyen, visited New Delhi for a 2-day visit on February 27-28, 2025.
• This marked the first-ever visit of the EU College of Commissioners outside Europe since their new mandate and the first visit of this kind in the history of India-EU bilateral ties.
• Prime Minister Narendra Modi and President von der Leyen affirmed that the EU-India Strategic Partnership has yielded strong benefits for both regions and for global peace and prosperity.

KEY HIGHLIGHTS

• Strengthening the India-EU Strategic Partnership:
  • Both leaders committed to raising the India-EU Strategic Partnership to new heights, building on 20 years of cooperation and over 30 years of collaboration between India and the European Communities (EC).
  • They emphasized that the India-EU partnership has delivered significant benefits and both sides agreed to further enhance their cooperation for the larger global good, aligning with shared values and principles.
• Shared Values and Commitment to Global Peace and Stability:
  • India and the EU, as the world’s largest democracies and open-market economies, reaffirmed their mutual commitment to shaping a resilient, multipolar global order.
  • Their partnership is rooted in the shared commitment to democracy, rule of law, and adherence to a rules-based international order.
  • They emphasized the need for joint efforts to tackle global challenges, including climate change, governance of Artificial Intelligence (AI), terrorism, and development finance.
• Strengthening Trade, Technology, and Economic Cooperation:
  • Both sides underscored the importance of cooperation in trade and de-risking supply chains, expanding mutual investment, and advancing emerging technologies.
  • The India-EU Trade and Technology Council (TTC), established to promote cooperation between India and the EU on issues like trade, technology, and green transition, was highlighted for its progress in promoting strategic collaboration.
• Negotiating the Free Trade Agreement (FTA):
  • The leaders tasked their negotiating teams to pursue the conclusion of a balanced, ambitious, and mutually beneficial Free Trade Agreement (FTA) by end of 2025.
  • They agreed on the importance of removing trade barriers and enhancing market access to boost India-EU trade relations.
  • Additionally, both sides agreed to work towards agreements on Investment Protection and Geographical Indications.

• Collaboration on Critical Technologies:
  • Semiconductors: The leaders welcomed progress made in implementing the Memorandum of Understanding (MoU) on semiconductors to strengthen supply chains and facilitate talent exchange in the sector.
  • 6G Technology: The leaders endorsed the MoU between the Bharat 6G Alliance and the EU 6G Smart Networks and Services Industry Association, focusing on creating trusted telecommunications and resilient supply chains.
  • AI and Digital Infrastructure: Both sides pledged to deepen cooperation on trusted, sustainable AI, high-performance computing, and Digital Public Infrastructure, with a focus on green and clean energy technologies.
• Green and Sustainable Development Cooperation:
  • Clean Energy: The leaders agreed to deepen their partnership on clean hydrogen, offshore wind, and solar energy.
  • The establishment of an India-EU Green Hydrogen Forum was welcomed, as well as the India-EU Business Summit on Offshore Wind Energy.
  • They highlighted sustainable urban mobility, smart cities, and disaster management as areas for enhanced collaboration.
• India-Middle East-Europe Economic Corridor (IMEC):
  • Both sides reaffirmed their commitment to the India-Middle East-Europe Economic Corridor (IMEC), announced during the G20 Leaders’ Summit in New Delhi.
  • The IMEC initiative will strengthen infrastructure, trade, and connectivity between India, the Middle East, and Europe.
• People-to-People Ties and Migration:
  • Both countries committed to strengthening people-to-people ties, particularly in areas such as higher education, research, sports, and culture.
  • The leaders agreed to promote legal, safe, and orderly migration to address labor market needs, especially in the context of India’s growing human capital and the EU’s demographic challenges.
• International Solar Alliance (ISA) and Biofuels Cooperation:
  • The leaders emphasized the importance of deepening collaboration under the framework of the International Solar Alliance (ISA), the Coalition for Disaster Resilient Infrastructure (CDRI), and the Global Biofuels Alliance.
  • These initiatives aim to accelerate the transition to clean energy and promote disaster resilience.
• Defence and Security Cooperation:
  • The leaders emphasized the growing importance of defence cooperation, including joint military exercises and collaboration between the Indian Navy and EU maritime security entities.
  • India expressed interest in joining projects under the EU’s Permanent Structured Cooperation (PESCO) and engaging in negotiations for a Security of Information Agreement (SoIA).
  • They also underscored the need for deeper collaboration in counterterrorism efforts and tackling cross-border terrorism and terrorism financing.
• Commitment to a Free, Open, and Peaceful Indo-Pacific:
  • Both sides reaffirmed their commitment to building a free, open, peaceful, and prosperous Indo-Pacific, based on international law and sovereignty.
  • India welcomed the EU’s joining of the Indo-Pacific Oceans Initiative (IPOI), which promotes marine conservation and regional cooperation.
  • The leaders also committed to exploring trilateral cooperation, including in Africa and the Indo-Pacific region.
• Global and Regional Issues:
  • The two leaders discussed key international and regional issues, including:
    • War in Ukraine: Both sides expressed support for a just and lasting peace in Ukraine based on respect for territorial integrity, international law, and the UN Charter.
    • Middle East Peace: The leaders reaffirmed their support for the two-state solution for Israel and Palestine, emphasizing the importance of peaceful coexistence within recognized borders.

CONCRETE STEPS TAKEN

• FTA Negotiations: Speed up negotiations to conclude the India-EU Free Trade Agreement (FTA) by the end of 2025.
• Defense Cooperation: Hold focused discussions on defense industry policy to explore new initiatives and collaboration opportunities.
• IMEC Progress: Organize a review meeting to assess the progress of the India-Middle East-Europe Economic Corridor (IMEC).
• Maritime Security: Strengthen maritime domain awareness and interoperability for better security cooperation.
• Semiconductor and Technology Cooperation: Convene the next meeting of the Trade and Technology Council (TTC) to focus on semiconductors and critical technologies.
• Green Energy Cooperation: Enhance collaboration on clean and green energy, with a special focus on green hydrogen.
• Indo-Pacific Cooperation: Deepen trilateral cooperation in the Indo-Pacific region, focusing on security and economic resilience.
• Disaster Management: Strengthen cooperation on disaster preparedness, response coordination, and technical engagement for resilience.

HISTORICAL CONTEXT OF THE RELATIONSHIP

Diplomatic Relations:

• 1962: India and the European Economic Community (EEC), the precursor to the EU, established diplomatic relations.
• 1993: The Joint Political Statement marked a significant step forward, setting the stage for deeper cooperation.
• 1994: The Cooperation Agreement was signed, laying the foundation for further strengthening ties between India and the European Union.

Strategic Partnership:

• The India-EU Strategic Partnership was formally established during the 5th India-EU Summit in 2004 in The Hague.
• 15 Summits have been held between India and the EU since the turn of the millennium, showcasing the evolving relationship.
• The partnership has been upgraded progressively, reflecting the growing significance of the relationship.

ECONOMIC RELATIONS

Bilateral Trade in Goods:

• FY 2023-24: Total India-EU trade in goods amounted to $135 billion, reflecting a 90% increase in trade over the past decade.
  • Indian Exports to the EU: $76 billion.
  • Indian Imports from the EU: $59 billion.

Trade in Services:

• In 2023, the total India-EU trade in services stood at $53 billion.
  • Indian Exports: $30 billion.
  • Indian Imports: $23 billion.

Foreign Direct Investment (FDI):

• FDI from the EU (April 2000 – September 2024): The EU invested $117.4 billion in India, constituting 16.6% of India’s total FDI equity inflows.
• Indian FDI outflows to the EU: $40.04 billion (April 2000 to March 2024).

TECHNOLOGICAL COOPERATION

Science and Technology Cooperation:

• India-EU collaboration operates under the Science and Technology Cooperation Agreement signed in 2007.

Key Technological Initiatives:

• Semiconductor R&D: A Memorandum of Understanding (MoU) was signed in November 2023 to promote joint Research and Development (R&D)
• Artificial Intelligence (AI): Both parties participated in the Global AI Summit in New Delhi (2023) to further explore AI collaboration.
• High-Performance Computing (HPC): An Intent of Cooperation was signed in November 2022 to advance cooperation in this critical technology.

Technology Development Focus:

• The partnership aims to counter China’s dominance in critical technologies like semiconductors and AI, with a focus on securing technological supply chains and boosting innovation.

GREEN ENERGY SOLUTIONS

India-EU Green Hydrogen Cooperation:

• India was the exclusive partner at the European Hydrogen Week held in Brussels (November 2024), underscoring the growing cooperation in green hydrogen.
• The EU played a key role in the International Conference on Green Hydrogen held in Delhi (September 2024).
• The European Investment Bank committed €1 billion to support India’s green hydrogen projects.

Green Hydrogen Ecosystem:

• India aims to develop a green hydrogen ecosystem by 2030, with European collaboration, especially in the areas of renewable energy and hydrogen production.

PEOPLE TO PEOPLE TIES

Indian Diaspora in the EU:

• There has been significant growth in the Indian diaspora across the EU, especially among students, researchers, and skilled professionals.

Erasmus Scholarships:

• Over 6,000 scholarships have been awarded to Indian students over the past 20 years, making Indian students among the top recipients of these scholarships.

Marie Sklodowska-Curie Actions:

• 2,700 Indian researchers have been funded under the EU’s Horizon Europe Programme since 2014, enhancing India-EU collaboration in research and innovation.

EU Blue Cards:

• In 2023-24, 20% of all EU Blue Cards issued went to Indian professionals, reflecting India’s growing role in the EU labor market.

DEFENCE COOPERATION

Defence Cooperation:

• Maritime Security: The focus is on enhancing security cooperation in the Indo-Pacific region, with particular attention to countering piracy and ensuring the protection of sea lanes.
• First Joint Naval Exercises: The first India-EU joint naval exercises took place in October 2023 in the Gulf of Guinea, marking a new phase in security cooperation.
• Both sides are working closely on counter-terrorism, piracy, and natural disaster management.

SPACE COOPERATION

• ISRO and the European Space Agency (ESA) have collaborated on significant space missions, including:
  • The PSLV launch for the PROBA-3 mission in December 2024.
  • Cooperation on the Chandrayaan-3 and Aditya-L1
  • A Memorandum of Understanding (MoU) was signed for cooperation on India’s Gaganyaan human spaceflight mission, marking a new chapter in space diplomacy.

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