EU-India 2020-2025 Strategic Partnership: United We Thrive, Divided We Strive?

EU-India Partnership Dynamics: who gained more and how does the future look like? - by Frederic Eger - The European Union (EU) and India have embarked on a strategic partnership that aims to enhance cooperation across various domains, including trade, technology, and security. This partnership is not merely a diplomatic formality; it reflects a deep-seated recognition of the mutual benefits that can be derived from closer ties. The EU is India's largest trading partner, while India is one of the EU's fastest-growing markets. The strategic partnership is designed to leverage these economic synergies while addressing shared geopolitical challenges.

Importance of the Roadmap 2025.

The EU-India Strategic Partnership Roadmap until 2025 serves as a guiding framework for this collaboration. It outlines specific objectives and initiatives aimed at strengthening bilateral relations. The roadmap is particularly significant in the context of shifting global dynamics, where both entities seek to assert their influence and navigate the complexities of a multipolar world. By focusing on trade, technology, and security, the roadmap aims to foster mutual growth and stability, thereby enhancing the global standing of both the EU and India.

Trade Cooperation.

As of 2022, the total trade volume between the EU and India reached approximately €120 billion, making the EU India's largest trading partner. This robust trade relationship encompasses a wide range of sectors, including pharmaceuticals, textiles, machinery, and technology. However, despite this strong foundation, there remain significant barriers that hinder the full potential of trade between the two entities.

Free Trade Agreement (FTA) Initiatives

In response to these challenges, the EU and India have relaunched negotiations for a comprehensive Free Trade Agreement (FTA) after a nine-year hiatus. The FTA aims to eliminate tariffs, reduce non-tariff barriers, and enhance market access for goods and services. This initiative is expected to significantly boost economic cooperation and create new opportunities for businesses in both regions.

EU-India Trade and Technology Council (TTC).

The establishment of the EU-India Trade and Technology Council (TTC) in February 2023 marks a pivotal moment in enhancing bilateral trade relations. The TTC serves as a platform for dialogue and cooperation, focusing on strategic areas such as resilient value chains, market access issues, and investment screening mechanisms. By addressing these critical areas, the TTC aims to facilitate smoother trade flows and foster a more integrated economic relationship.

Resilient Value Chains and Market Access

One of the key focuses of the TTC is the development of resilient value chains. In light of recent geopolitical tensions and supply chain disruptions, both the EU and India recognize the need to collaborate on enhancing supply chain resilience. This includes diversifying sources of supply and reducing reliance on single sources, thereby ensuring stability in trade relations.

Investment Screening Mechanisms

Another important aspect of trade cooperation is the enhancement of mutual understanding regarding foreign direct investment (FDI) screening processes. By establishing clear investment screening mechanisms, both parties aim to foster investment security and encourage greater investment flows between the EU and India.

Technological Collaboration: Areas in Focus.

The EU-India partnership places a strong emphasis on technological collaboration, particularly in cutting-edge technologies. The TTC's first working group is dedicated to identifying and promoting key areas of technological cooperation that can drive innovation and economic growth.

Digital Governance and Connectivity.

Digital governance and connectivity are central to the technological collaboration between the EU and India. The partnership aims to promote standards for emerging technologies such as artificial intelligence (AI), 5G/6G, and quantum computing. By establishing a framework for digital governance, both parties seek to ensure that technological advancements align with democratic values and principles.

Green Technologies and Climate Initiatives.

In addition to digital technologies, the partnership also emphasizes collaboration on green technologies. Joint initiatives in clean energy and sustainability are crucial for addressing climate change challenges. By working together, the EU and India can leverage their respective strengths to develop innovative solutions that contribute to global sustainability goals.

Semiconductor Sector Cooperation.

The semiconductor sector is another area of focus for the EU-India partnership. Both parties recognize the strategic importance of semiconductors in the global economy and are coordinating efforts to enhance cooperation in this sector. A Memorandum of Understanding (MoU) is expected to be established to facilitate collaboration and strengthen supply chain resilience.

Framework for Responsible AI Development.

The TTC aims to create a framework for responsible AI development that benefits both societies. This framework will address ethical considerations, data protection, and the societal impact of AI technologies, ensuring that advancements in this field are aligned with shared democratic values.

Military Technologies and Defense Partnerships.

Security cooperation is increasingly vital in the EU-India partnership, given the shared concerns regarding regional stability and external threats. Both entities recognize that a secure environment is essential for fostering economic growth and ensuring the well-being of their citizens. The partnership seeks to enhance defense cooperation, particularly in military technologies. Areas such as cyber defense and maritime security are of particular interest, as both the EU and India face challenges related to cybersecurity threats and regional maritime disputes.

Intelligence Sharing and Regional Stability

Developing frameworks for intelligence sharing is another critical aspect of security cooperation. By enhancing intelligence-sharing capabilities, the EU and India can better address security threats, particularly those posed by external actors such as China and Russia.

Geopolitical Alignment and Strategic Autonomy

The EU and India are also exploring avenues for geopolitical alignment as a counterbalance to dependencies on other global powers. Strengthening ties between the two entities promotes strategic autonomy and enhances their ability to navigate the complexities of a multipolar world.

Benefits of the Partnership.

Benefits for Europe.

The EU stands to gain significantly from its partnership with India. Key benefits include:

1. Access to India's vast talent pool and IT expertise: India is home to a large and skilled workforce, particularly in the technology sector;
2. Collaboration on cutting-edge technologies: Joint initiatives in areas such as AI, blockchain, and renewable energy can enhance Europe's technological capabilities;
3. Increased trade and investment opportunities: The FTA and TTC initiatives are expected to create new avenues for trade and investment;
4. Enhanced global competitiveness: Strengthening ties with India positions Europe as a key player in the global economy.

Benefits for India

India also stands to benefit from its strategic partnership with the EU. Key advantages include:

1. Access to European markets, technologies, and research institutions: This access can facilitate India's economic growth and technological advancement.

2. Knowledge sharing and capacity building: Collaboration in areas such as cybersecurity and data protection can enhance India's capabilities.

3. Joint development of innovative solutions: Working together on global challenges can lead to the development of effective solutions.

4. Strengthened global influence: The partnership enhances India's standing on the global stage.

Areas for Future Collaboration.

Emerging Technologies

The partnership has significant potential for collaboration in emerging technologies, including AI, machine learning, and blockchain. Joint research and development initiatives can drive innovation and economic growth.

Renewable Energy and Sustainability

Collaboration in renewable energy and sustainability initiatives is crucial for addressing climate change challenges. Both parties can work together to develop clean energy technologies and promote sustainable practices.

Cybersecurity and Data Protection

As digital threats continue to evolve, collaboration in cybersecurity and data protection is essential. Joint initiatives can enhance both parties' capabilities to address emerging cyber threats.

Healthcare, Biotech & Space Tech.

The COVID-19 pandemic has highlighted the importance of collaboration in healthcare and biotechnology. Joint research initiatives can lead to the development of innovative healthcare solutions. The partnership also holds potential for collaboration in space exploration and technology. Joint initiatives can enhance both parties' capabilities in this critical area.

The Roadmap 2020-2025 Achievements :

The TTC, Semiconductors' MoU, EV Battery Recycling Initiative.

The TTC has made significant progress since its establishment, with ongoing discussions and initiatives aimed at enhancing cooperation in trade, technology, and security. A notable achievement includes the signing of a Memorandum of Understanding (MoU) on semiconductors, aimed at enhancing supply chain resilience and fostering collaboration in this strategic sector.

Recent initiatives focusing on electric vehicle (EV) battery recycling and waste management strategies have also been launched, fostering innovation and investment opportunities between Indian and EU companies.

The EU-India Strategic Partnership Roadmap 2020-2025 is a comprehensive approach to enhancing bilateral relations through focused efforts in trade, technology, and security. By addressing these critical areas, both entities aim to navigate the complexities of a multipolar world while fostering mutual growth and stability.

The EU-India Strategic Partnership, outlined in the "Roadmap to 2025," aims to boost cooperation in trade, technology, security, and climate change sectors. India benefits from increased trade and investment opportunities in sectors like pharmaceuticals and technology, while the EU benefits from market access, diversification, and strengthening strategic alliances. The partnership also focuses on green technologies and digital transformation, aligning with India's sustainable development goals. Increased mobility for Indian students and professionals to Europe can improve educational outcomes and remittances, positively impacting India's economy. Both parties' success depends on effectively implementing their commitments and navigating complex global dynamics.

EU-India Relations Future.

As the global landscape continues to evolve, the EU-India partnership is poised to play a crucial role in shaping the future of international relations. By strengthening ties and collaborating on key initiatives, both parties can enhance their global standing and contribute to a more stable and prosperous world. The roadmap until 2025 serves as a vital framework for achieving these objectives, ensuring that the partnership remains dynamic and responsive to emerging challenges and opportunities.