Context

• In an era of geopolitical uncertainty, moments of strategic clarity are increasingly rare yet profoundly consequential.
• The evolving relationship between the European Union and India, highlighted by the visit of senior EU leaders to New Delhi for India’s 77th Republic Day and the 16th India–EU Summit, marks such a moment.
• Their presence signals a deliberate shift toward deeper alignment, driven by shared concerns about global instability and a common pursuit of autonomy in foreign policy decision-making.

Changing Global Context and Strategic Urgency

• The strengthening of India–EU ties must be understood against a backdrop of eroding trust in traditional alliances.
• India’s relationship with the United States has come under strain due to punitive tariffs and sharp rhetoric linked to India’s energy ties with Russia.
• Europe has faced similar disillusionment amid shifting U.S. priorities and the consequences of the Ukraine conflict.
• These experiences have reinforced a shared conclusion: reliance on any single power is increasingly risky, and strategic diversification is essential for long-term stability.

Untapped Potential in India–EU Relations

• Despite clear complementarities, India–EU relations have historically fallen short of their promise.
• Engagement has been uneven, often sidelined by disagreements over Russia and China or overshadowed by stronger ties with Washington.
• The current moment, however, reflects a recalibration. Both sides now view the relationship not as secondary, but as central to their broader global strategies, creating conditions for more sustained and meaningful engagement.

The Strategic Importance of the Free Trade Agreement

• A key pillar of this renewed engagement is the long-pending Free Trade Agreement between India and the EU.
• Negotiated intermittently since 2007, the FTA has taken on new significance as a tool of economic and strategic diversification.
• Its conclusion could expand trade across sectors such as textiles, pharmaceuticals, automobiles, machinery, and digital services.
• For India, it offers greater access to European markets and support for its manufacturing ambitions.
• For the EU, it provides an opportunity to reduce over-dependence on China by engaging one of the world’s fastest-growing major economies. 

Climate Equity and Trade Challenges

• The FTA negotiations also expose important tensions, particularly around climate equity.
• The EU’s Carbon Border Adjustment Mechanism, which imposes carbon-related charges on imports such as steel and cement, has emerged as a major concern for India.
• These measures risk undermining the economic benefits of the agreement by acting as de facto non-tariff barriers.
• A balanced approach, one that recognises developmental differences while maintaining environmental ambition, is essential to prevent climate policy from becoming a source of strategic friction.

Defence and Security Cooperation

• Beyond economics, defence cooperation represents a critical dimension of India–EU engagement.
• Proposals for a dedicated security and defence partnership, comparable to EU arrangements with Japan and South Korea, reflect growing strategic convergence.
• For Europe, closer ties would open access to India’s defence market and enable co-production opportunities.
• For India, such cooperation aligns with domestic manufacturing goals and enhances access to advanced technology.
• Expanded collaboration would also strengthen security in the Indian Ocean region, an area of increasing geopolitical competition.

A Model for a Multipolar World

• At a systemic level, the India-EU relationship has the potential to serve as a template for cooperation in a multipolar world.
• Both partners emphasise sovereignty and resist external vetoes over national decision-making, whether from Washington, Beijing, or Moscow.
• Having experienced the costs of over-dependence-on energy supplies, markets, or security guarantees-India and the EU increasingly view strategic resilience as a shared objective.
• Their partnership demonstrates how flexibility, mutual respect, and pragmatic cooperation can coexist with differing domestic priorities.

Conclusion

• The deepening India-EU relationship reflects a broader search for stability and balance in a rapidly changing global order.
• By advancing collaboration in trade, climate policy, defence, and global governance, both sides can translate long-standing potential into durable outcomes.
• Success will depend on political resolve and the ability to overcome bureaucratic inertia.
• If sustained, this partnership could strengthen multilateralism and contribute meaningfully to a more balanced, equitable, and resilient international system.