Anil Trigunayat
Former Indian Ambassador to Jordan, Libya and Malta and a distinguished member of prestigious think tanks such as the Vivekananda International Foundation and the United Services Institute of India.
India and the EU have been strategic partners for over two decades, since 2004. The EU has also become one of India’s largest trading (€120-135 billion) and investment partners. Relations and institutional mechanisms, including the Troika dialogue, continued to strengthen and deepen for mutual benefit.
Although progress in several areas, such as the bilateral trade agreement, has been slow and painful, the current disruption of the transatlantic alliance Trumpian unilateralism has created some urgency to conclude the trade deal as soon as possible. It is expected that by January 2026 the gaps will be filled and the FTA could even be signed on January 27. or before when the India-EU summit takes place in New Delhi. India also conferred a distinctive honor on EU leaders by inviting them as the chief guests of Republic Day, January 26. European Commission President Ursula Von der Loyen and European Council head Antonia Costa are expected to be key guests this year.
This gesture by India and the fact that in the face of changing global circumstances and volatility, the EU has started attaching greater importance to each other by cementing and frequenting high-level interactions, despite some political differences with some members over the Russia-Ukraine war and India’s continued crude imports from Russia. However, pragmatism and the fact that India has become the fastest growing major economy, overtaking the UK and Japan within a year to become the fourth largest economy and India’s clear expression of its national interests, made them realize the need to abandon rigid positions for their own interests. Additionally, India and the UK, along with several other countries, have already signed the FTAs. The EC-FTA with certain European countries with investment commitments has also become operational. All of these factors, along with Trump’s still-looming tariffs and disenchantment with U.S. politics, gave rise to reasonable cause for identification. and overcome all irritants in India-EU trade and economic relations, including the trade agreement.
High-level contacts have been exceptional of late. It was for the first time that twenty-two European commissioners visited India. German Chancellor Metz just completed a state visit, signing more than two dozen agreements. The French president is also expected to visit early this year as several hundred Rafael fighter jets and other equipment are being negotiated and finalized by India and France. Shri Ajit Doval, National Security Advisor to the Prime Minister of India and HE Emmanuel Bonne, Diplomatic Advisor to the President of the French Republic, co-chaired the 38th India-France Strategic Dialogue in New Delhi on January 13. During the strategic dialogue, India and France reiterated their commitment to the strategic partnership.
The former minister of External Affairs Dr S Jaishankar started the new year with the first visit to Europe – France and Luxembourg. In addition to his talks with his counterpart, he also visited French President Macron. During the French-Indian Year of Innovation, they explored ways to diversify ties in the areas of innovation and technology, startups, health, education and mobility, and discussed growing cooperation in the strategic areas of defence, security, space, civil nuclear, maritime security and economy. A meeting of the foreign ministers of India and Weimar was also held. Dr Jaishankar appreciated comments from his counterpart and President Macron that the two sides chairing the G7 and BRICS respectively in 2026 would aim to work together to find synergies rather than working at cross purposes. He also said that “with our two nations engaged in multipolarity, I believe that working together is important for ourselves, also to stabilize global politics at this stage.” Italian Prime Minister Meloni invited Prime Minister Modi to visit Italy. The IMEC Corridor and the Multi-Dimensional Route offer enormous potential for connectivity and capacity between India, the Middle East and Europe, which both sides are serious about exploiting despite the immediate roadblocks.
The comprehensive agreement on trade and investment has dragged on for more than two decades. But fortunately, differences in market access, agriculture, automobiles, technical and non-technical barriers to trade, including GIs and the EU border carbon adjustment mechanism, are about to be corrected or reduced to mutual satisfaction. The trade deal will provide smoother access to both countries’ markets, especially for labor-intensive Indian products.
The mandate of bilateral engagement has extended to various other strategic areas, including climate change, counter-terrorism, defence, security including cyber, quantum AI and new communications technologies 6G and Indo-Pacific, as well as human resources, education and skills development. and innovation and renewable energy. India and the EU established a Trade and Technology Council in 2023 to strengthen cooperation in the areas of digital governance, semiconductors, clean energy technologies and resilient supply chains. Migration and mobility remain a major priority for India. How to immunize global supply and value chains (GVCs) from complete dependence on a certain country against the arbitrary behavior of some others remains a matter of major concern and congruence for both sides. India reaffirms that relations can only be strengthened if they respect each other; Mutual interests; Mutual sensitivity.
India and the EU have a mature strategic mindset, driven by mutual interests and can lead to a productive and enriching strategic partnership with common values and democratic architecture, for the 21st century. Both support the rules-based order and multilateral global governance and institutions that provide a fulcrum for things to come.
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