The European Union (EU) on Wednesday launched an ambitious new framework to intensify its cooperation with India in the areas of trade, technology, and security. Still, the foreign and security policy chief of the bloc, Kaja Kallas, warned that India's defence cooperation with Russia and continued Russian oil imports "stand in the way of closer ties.
The "New Strategic EU-India Agenda" was unveiled in Brussels by the European Commission with Kallas, the EU's foreign affairs and security policy high representative. The strategy is set to gain approval from all 27 member states by the close of 2025, allowing for official adoption during the India-EU Summit early in 2026.
The report identifies five key domains of cooperation, with a focus on trade, investment, and technology. It also urges finalizing the negotiations for a free trade agreement (FTA). However, Kallas insisted that the alliance cannot be made only about economics, as India's defense ties with Moscow are still a sore point.
“Ultimately, our partnership is not only about trade but also about defending the rules-based international order,” Kallas said while announcing the new strategy. “Participating in military exercises, purchases of oil – all these are obstacles to our cooperation when it comes to deepening the ties.”
Her comments were made about India's involvement in Russia's Zapad joint military exercise with Belarus between September 10–16. India contributed a 65-strong contingent to the drill, which also involved members of China, Cuba, and Iran. The appearance of two US military observers in Belarus during the drill took EU officials aback.
The exercise coincided with the EU's Political and Security Committee's first visit to India, which is responsible for the bloc's common defence and foreign policy. The issue was raised by committee members during talks with their Indian counterparts, it has been reported.
European Commission President Ursula von der Leyen promoted the new agenda as part of a wider effort to bolster ties with "reliable partners" amid global uncertainty.
"Now is the time to concentrate on reliable partners and double down on partnerships based on common interests and inspired by common values. With our new EU-India strategy, we are taking our relationship to the next level," Von der Leyen said.
She also added that the strategy not only seeks to increase trade and investment but also increase cooperation in defence and innovation. "Europe is already India's largest trading partner and we are determined to conclude our free trade agreement by the end of this year. Europe is open for business. And we are willing to invest in our common future with India," she continued.
India and the EU finalized the 13th round of FTA negotiations in New Delhi last week, followed by the next round on October 8 in Brussels. EU trade commissioner Maroš Šefčovič and agriculture commissioner Christophe Hansen also traveled to India recently to give a boost to the process, particularly with US tariffs of 50% on Indian products having picked up pressure to diversify markets.
India-EU economic relations have increased steadily—two-way trade in merchandise has picked up close to 90% in the last ten years, reaching €120 billion in 2024, while services trade was €59.7 billion in 2023.
The new strategy is framed through five pillars:
- Trade, investment, technology, and sustainability
- Defence and security
- Connectivity and global challenges
- Labour mobility and coordination
- Shared priorities for long-term cooperation
“Now is the time to focus on reliable partners and double down on partnerships rooted in shared interests and guided by common values. With our new EU-India strategy, we are taking our relationship to the next level,” Von der Leyen said.
The defence and security pillar covers offers for increased cooperation on maritime security, cyber defence, and counterterrorism, and developing defence industrial cooperation. Both parties are also striving towards a Security of Information Agreement to allow the transfer of classified information, which will consolidate military and security partnership.
In addition, the EU seeks more formalized interaction with India on topics associated with "Russia’s war against Ukraine, shadow fleets, and sanctions," capturing the geopolitical forces behind the new agenda.
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