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With the bilateral trade of goods worth 120 billion euros, the EU is the largest trading partner in India. There are 6,000 European companies operating in India and stimulating this relationship, the European Commission wishes to conclude a free trade agreement by the end of the year, which could considerably reduce tariffs and other obstacles.
After the blow to its trade relations with the United States, following the taxation of an average rate rate of 15%, the EU tries to accelerate agreements with other regions.
“There is a very complicated geopolitical situation, so the EU is now looking at India, which is the most populous country in the world. It is an increasing economic superpower, and it is a major player in the so-called South world. He therefore adapts to references to a new partnership to navigate geopolitical relations together for geopolitical relations for Eurrone.
Despite this, the head of the EU foreign policy, Kaja Kallas, warned that India’s historic military and economic ties with Russia were to be assessed. New Delhi buys large amounts of weapons and oil from Moscow, helping Russia fuel its war economy and its aggression against Ukraine.
“We know that India and Russia have a long -standing relationship, and I do not think they can simply cut bonds overnight,” said Angelika Niebler (Germany / EPP), president of the delegation of relations with India in the European Parliament.
The legislator considers that the EU must make advantages and against exercise by dialogue: “I think it is important that the EU is committed, to express our concerns, but to try to understand their point of view and their interests. Of course, after we have to defend our own interests,” she added.
Pragmatism rules
Given the current geopolitical realignment, another central pillar to be developed is the EU-Indian security and defense partnership. India’s defense budget for 2025-2026 is 69 billion euros and its traditional supplier is Russia, which represents 36% of its purchases.
However, India bought more in the West, in particular the United States, Israel, the United Kingdom, France and Germany. Links with the United States deteriorating, India considers EU as a new potential focal point.
Military supply agreements were signed with two key member states in 2025: France sold 26 burst sailor hunting planes, worth 7 billion euros, and Germany will build six type 214 submarines with Indian partners, worth 5 billion euros.
“Right now, India’s relations with the United States are at the bottom of rocks, Donald Trump is doing everything he can to alienate New Delhi: 50% of prices, a new approach to Pakistan. India therefore thinks that the European Union could be the largest partner in the West,” said Jorge Liboreiro.
But should the EU see India as a reliable ally when Prime Minister Narendra Modi seems to get closer to China, historically a rival? The EU accuses China of industrial overproduction, exports restrictions and criticizes its support for the war of Russia against Ukraine.
The deputy for the emergency deputy does not see the proximity of India with China as an obstacle: “Let us focus on our policy. I do not want to blame others for having done this or that.”
“We must adopt a pragmatic and realistic approach, always focusing on what is in our interests, on what strengthens the European Union,” she told Euronews.
The European Commission wants diplomatic efforts to work towards an EU-Indian summit in early 2026.
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Additional sources • Journalist: Isabel Marques Da Silva – Content production: Pilar Montero López – Video production: Zacharia Vigneron – Graphic: Loredana Dumitru – Editorial coordination: Ana Lázaro Bosch and Jeremy Fleming -Jones
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