In 2025, India and the European Union unveiled a refreshed Strategic Agenda that seeks to deepen cooperation across trade, security, technology, and connectivity. With both sides aiming to finalise a Free Trade Agreement by year-end, landmark initiatives such as the India-Middle East-Europe Economic Corridor and enhanced defence collaboration are at the heart of this roadmap. This agenda reflects shared democratic values as well as growing urgency in global supply-chain resilience, climate action, and emerging technology governance.

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India–EU Strategic Agenda

Why is it in News?

• India and the European Union (EU) have been reviving talks on a Free Trade Agreement (FTA 2.0) after years of stalled negotiations.

• Both sides are also deepening cooperation on global connectivity, emerging technologies, climate action, and defence security.

• With shifting geopolitics, supply chain risks, and the rise of China, the India–EU partnership is seen as crucial for a multipolar world order.

Economic and Trade Relations

• The EU is India’s third-largest trading partner, after the US and China.

• Bilateral trade in goods reached over €120 billion in 2023–24, with services trade also expanding steadily.

• EU accounts for nearly 11% of India’s total trade, while India is EU’s 10th largest trading partner.

• India enjoys a trade surplus with the EU, primarily in pharmaceuticals, IT services, textiles, and machinery.

• Compared globally, the EU remains a larger trading partner than ASEAN, Japan, or Russia for India.

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Global Connectivity

• India and the EU collaborate on infrastructure and connectivity projects in Asia, Africa, and the Indo-Pacific.

• The India–Middle East–Europe Economic Corridor (IMEC), launched at G20 (2023), aims to:

  • Reduce transit time by ~40%.

  • Integrate rail, ports, energy pipelines, and digital networks.

  • Link India, the Middle East (UAE, Saudi Arabia), and Europe through multimodal connectivity.

• This project rivals China’s Belt and Road Initiative (BRI), offering a democratic, transparent alternative.

Emerging Technologies

• India and the EU are working together on:

  • Semiconductors, artificial intelligence, quantum tech, cybersecurity, and digital governance.

  • Cooperation in data protection laws and privacy frameworks.

  • Developing green technologies such as renewable energy, electric mobility, and hydrogen.

• The EU’s Green Deal aligns with India’s net-zero goals (2070).

Security and Defence

• Cooperation has expanded to maritime security in the Indo-Pacific, anti-piracy operations, and freedom of navigation.

• Joint naval exercises are being explored to counter common threats.

• Dialogue on counter-terrorism, cyber security, and supply chain security has been strengthened.

• EU’s interest in Indo-Pacific strategy complements India’s vision of “Security and Growth for All in the Region (SAGAR)”.

People-to-People Ties

• Strong cultural and academic connections with over 100,000 Indian students studying in EU countries.

• Erasmus+ programme supports exchange of students and researchers.

• Indian diaspora in Europe contributes to trade, entrepreneurship, and cultural diplomacy.

• Migration and mobility partnerships are under discussion to enable smoother movement of skilled workers and professionals.

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Six Broad Principles of the India–EU Strategic Agenda

1. Focus on common values: democracy, rule of law, independent judiciary.

2. Build a fair and equitable trade agenda, tackling trade barriers.

3. Exchange best practices and harmonize standards to achieve “zero defect, zero effect” production.

4. Develop cutting-edge technologies and secure supply chains for critical raw materials.

5. Cooperation in trade and sustainable development, following the principle of Common But Differentiated Responsibility (CBDR).

6. Partnership for mutual growth and development in a multipolar world.

India–EU Free Trade Agreement (FTA 2.0)

• The first round of FTA talks (2007–2013) stalled due to disagreements on tariffs, IP rights, services, and labour/environment clauses.

• FTA 2.0 (revived in 2022) is a more ambitious and balanced framework:

  • Covers trade in goods, services, investment protection, sustainability, and digital trade.

  • Seeks a commercially meaningful outcome, unlike the earlier phase.

  • Both sides aim to finalize negotiations by mid-2026, to counter global trade disruptions.

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Phases of India–EU Relations

1. 1947–1970s: Early Diplomatic Engagement – Limited trade, focus on diplomacy with individual European countries.

2. 1980s–1990s: Evolution of Trade – Liberalization boosted ties; 1994 India–EEC Cooperation Agreement signed.

3. 2000s: Strategic Partnership – In 2004, India–EU Strategic Partnership formalized.

4. 2000s–2010s: Trade Growth & FTA Talks – EU became a key trading partner; FTA talks initiated but stalled.

5. 2010s: Joint Global Efforts – Cooperation on climate change, terrorism, UN reforms; EU supported India’s UNSC bid.

6. 2020–Present: Renewed Engagement – Stronger cooperation in digital, green energy, Indo-Pacific security, and vaccine diplomacy.

Significance for India

• Diversifies trade away from China and US dependency.

• Strengthens India’s role in global supply chains and sustainable growth.

• Provides access to technology, investment, and green finance.

• Helps India project influence in Europe and Indo-Pacific.

 

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