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Why India and Europe Must Walk in Step: Strategic, Economic and Global Imperatives

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Prime Minister Narendra Modi’s active participation in the G7 summit and successive high-level diplomatic engagements, including External Affairs Minister S. Jaishankar’s recent visit to Europe, underscore a growing realisation of the strategic value of India-Europe ties. In the wake of an increasingly fragmented global order, both India and Europe are seeking meaningful partnerships rooted in democratic values, economic resilience, and geopolitical balance. The convergence of interests in technology, climate change, trade, and global governance makes this moment ripe for recalibrating their strategic alignment.

Table of Contents:

  1. Introduction

  2. What is the Issue?

  3. Background of India-Europe Relations

  4. Strategic Dimensions of the Partnership

  5. Economic and Trade Linkages

  6. Technology and Digital Cooperation

  7. Security and Defence Synergy

  8. Climate and Global Governance Collaboration

  9. Impact on India

  10. Way Forward

  11. Model Practices and Strategic Pathways

 
What is the Issue?

In a rapidly polarising international landscape, characterised by the rise of China, declining American hegemony, and fractured multilateralism, both India and the European Union (EU) are looking to diversify partnerships. India is pursuing its doctrine of "multi-alignment" while the EU, especially post-Brexit, is pivoting towards new geopolitical anchors. However, despite strong potential, the India-Europe relationship has historically suffered from episodic enthusiasm and slow institutionalisation. The need of the hour is a sustained, structured, and strategic dialogue between these democratic powerhouses.

 

Background of India-Europe Relations:

  • India’s relationship with Europe dates back centuries through colonial legacies, trade, and education.

  • Post-Independence, relations were cordial but largely economic in nature.

  • With the rise of multipolarity, strategic priorities have evolved.

  • The 2020 India-EU Strategic Partnership Roadmap aimed to provide a framework for enhanced cooperation.

  • BREXIT has created space for India to engage more independently with both the UK and the EU bloc.

  • The Russia-Ukraine war has shifted European perspectives on Asian geopolitics and the Indo-Pacific, increasing interest in India as a strategic partner.

 

Strategic Dimensions of the Partnership:

 

1. Convergence in Multilateralism and Rules-Based Order

  • Shared commitment to a multipolar world rooted in rules-based international law.

  • Both back reforms in global institutions like the United Nations Security Council, WTO, and WHO.

  • Europe’s Indo-Pacific strategy recognizes India as a stabilising actor in the region.

 

2. Institutional Alignment

  • Ongoing negotiations for the India-EU Free Trade Agreement (FTA), Bilateral Investment Treaty (BIT), and agreements on geographical indicators (GI).

  • Structured dialogues on counter-terrorism, maritime security, climate action, and human rights.

 

Economic and Trade Linkages:

  • Bilateral trade between India and the EU reached over €120 billion in 2022–23, with a 43% jump in merchandise trade.

  • The EU is India’s second-largest trading partner after the United States.

  • India seeks European investments in clean energy, electric mobility, critical infrastructure, and digital innovation.

  • Challenges include: carbon border adjustment mechanism (CBAM), data localisation debates, and investment protection.

 

 

Technology and Digital Cooperation:

  • India and the EU are co-chairs in global digital governance forums.

  • Areas of synergy:

    • Artificial Intelligence (AI) regulation

    • Data protection norms

    • Cybersecurity collaboration

    • Semiconductor supply chain resilience

  • The EU’s Digital Services Act and India’s Digital Personal Data Protection Act have overlapping interests in protecting user rights while fostering innovation.

 

Security and Defence Synergy:

  • India has engaged with individual European countries like France, Germany, and the UK on defence cooperation.

  • The EU’s Strategic Compass and India’s Indo-Pacific Oceans Initiative overlap on maritime security.

  • India is seeking tech-transfer partnerships for indigenous defence manufacturing under 'Make in India'.

  • Europe is a major arms supplier (e.g., Rafale jets from France), but more institutional defence cooperation is needed.

 

Climate and Global Governance Collaboration:

  • Both India and the EU are signatories to the Paris Agreement and are committed to net-zero targets.

  • Europe’s Green Deal offers funding and tech transfer for India’s green hydrogen and renewable energy sectors.

  • Challenges include balancing trade (carbon tax) with developmental concerns.

 

Impact on India:

 

1. Strategic Leverage

Enhances India's role in balancing China in the Indo-Pacific without falling into bloc politics.

 

2. Economic Growth

Access to capital, green technology, and high-quality exports to EU markets.

 

3. Global Credibility

Joint positions on multilateral reforms and democratic governance raise India's international profile.

 

4. Defence Modernisation

Europe offers technology and know-how that can upgrade India's indigenous defence capacities.

 

Way Forward:

 

1. Institutionalise Strategic Dialogue

Move beyond ad-hoc summits to regular, outcome-oriented mechanisms like the EU-Japan Strategic Partnership Model.

 

2. Complete the FTA

Ensure mutual sensitivity on carbon tariffs, sustainability norms, and digital standards.

 

3. Bridge the Trust Gap

Through youth exchange programmes, research collaborations, and public diplomacy campaigns.

 

4. Localise Cooperation

Encourage sub-national linkages between Indian states and European regions in trade, tourism, and education.

 
Model Practices and Strategic Pathways:

  • India-France Strategic Partnership: A model for defence, space, and nuclear cooperation.

  • Germany's Indo-Pacific Guidelines: Offers structured cooperation on maritime and infrastructure projects.

  • India-Nordic Summits: Collaboration on clean tech, smart cities, and startups.

 

Conclusion:

India and Europe are natural allies in an increasingly divided global arena. As India asserts its place as a voice of the Global South and Europe recalibrates its strategic dependencies, both sides must move from aspirational dialogues to actionable frameworks. A stronger India-Europe partnership is not just mutually beneficial-it is vital for a balanced and inclusive global order.